Rovi’s trading floor story in 2024 is one of ups and downs. Its shares hit all-time highs this year, but have since embarked on a decline that has sent the company trading 20% lower. At the time, analysts had upped the rating on the pharmaceutical company to its worst in four years. But recent declines have pushed those analysts back, and they now believe that Rovi is again a “buy” on the stock market for the first time since April.
His rise in The League of Ibex (the combined elEconomista.es which is prepared with the averages of the recommendations of Bloomberg and FactSet) over the past week alone has been dizzying, improvement up to 10 positions and move from level 22 of the national index to twelfth place, its best position in this tool since the beginning of April.
Just last week, the analysis teams at BNP Paribas, CaixaBank BPI, Bestinver and Alantra Equities changed their advice for Rovi and recommended buying its shares on the stock market. However, this is already 70% of analysts covering the stock recommend buyingcompared to only 44% last month.
The reasons for this improvement in recommendations? This is largely due to the deterioration that the pharmaceutical company’s shares have accumulated in recent months: they have fallen from over 90 euros, which marked historic highs in May, to just above 70 euros, which represents a correction of just over 20%. At the same time, expert assessments have hardly suffered any reductions and these are also in historic areas. On average, analysts expect that in the coming months, Rovi shares will trade at 97 euros per share. This price target would imply reaching new historical highs and by then, the company still has a revaluation potential of 33%.. And there are even more optimistic ones: up to six analysts see the value of their shares above 100 euros, which increases the range to 39% (from Oddo they offer the most attractive valuation, at 111 euros with a potential of 54%).
Confidence in the company’s behavior does not only come from experts, but also from the family itself. This Monday, the López-Belmonte family (founding family), through Nobel Inversiones, increased its stake in the company to 58.186%, thus strengthening its control over the group, compared to the previous stake of 55.191%.
During the month of September, it was also learned that the CVC Capital Partners fund was in advanced talks to acquire Rovi’s own production business, an operation that would be valued at over 3 billion euros. This potential acquisition, however, did not please investors who, on the day the news was announced, unwound their positions in the pharmaceutical group until they fell by 7% (its second worst session of 2024, after the second in August, which also lost just over 7%, according to its results). Today, Rovi reduces its annual profits on the stock market to 21%, compared to the more than 40% that they had increased when they reached historic highs and which placed it as one of the most optimistic companies on the ibex of the year.
