Opinions
The Panic-Proof Portfolio (Stockchase Research)
Roivant
ROIV-Q
PAST TOP PICK
Feb 13, 2025
Stock price when the opinion was issued
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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)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.