Opinions
The Panic-Proof Portfolio (Stockchase Research)
Roivant
ROIV-Q
TOP PICK
Apr 02, 2024
Stock price when the opinion was issued
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As this $9 billion market cap pharma company will join the S&P MidCap 400, we reiterate ROIV as a TOP PICK. Cash reserves are growing and the company trades at 1.5x book. We recommend trailing up the stop (from $7.50) to $9.50, looking to achieve $15 -- upside potential of 33%. Yield 0%
(Analysts’ price target is $15.90)After announcing positive reports in two important autoimmune drugs, we again reiterate ROIV as a TOP PICK. It trades at 2x earnings, under 2x book and supports a robust return on equity. We like that cash reserves are growing, while debt is retired. We recommend trailing up the stop (from $9:50) to $10.50, looking to achieve $16.00 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $17.06)We reiterate ROIV as a TOP PICK. The pharma company has continued to increase R&D spending into drugs for treatment such as autoimmune issues respiratory hypertension. It trades at 2x trailing earnings and 1.6x book value, while supporting a robust return on equity. We like that cash reserves are growing, while debt is retired. We recommend maintaining the stop at $10.50, looking to achieve $15.00 -- upside potential of 27%. Yield 0%
(Analysts’ price target is $17.06)We again reiterate ROIV as a TOP PICK. The Swiss based biopharma company continues to develop its long pipeline of projects. It trades at 2x earnings, under 2x book and supports a robust 128% ROE. We like that cash reserves are growing, while debt is retired. We continue to recommend a stop-loss at $10.50, looking to achieve $16 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $16.25)Our PAST TOP PICK with ROIV has triggered its stop at $10.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 9%, when combined with our previous guidance.
The pharma company recently received supportive results for its new product which helps bring relief to patients with eye inflammation and pain and can help avoid total blindness -- steroids are presently the primarily treatment currently. It trades at 2x trailing earnings and 1.4x book value. The board has approved a $1.2 billion share buyback, which it has ample and growing cash reserves to manage. Recently reported revenues beat expectations, growing by 118% from the year previous and is expected to grow by 50% p.a. for at least the next five years. We recommend setting a stop-loss at $7.50, looking to achieve $16.00. Yield 0%
(Analysts’ price target is $16.08)