Experts continue to improve their confidence in Rovi stock. If at the end of September the pharmaceutical laboratory regained the buy recommendation (which it had no longer held since April), now the analysts are improving this poster and their purchase advice is the best in two years. This tip also helps you become the best recommendation of all the Ibex 35.
For the first time since the company entered the national index (December 20, 2021), it occupies first place in the The Ibex League (the handset elEconomista.es which is prepared with the averages of the recommendations of Bloomberg and FactSet and which is revised weekly). It dethrones Logista and Sacyr, which have occupied the first two places without interruption for months. In fact, for the first time since 2009, 100% of analysts who study its behavior on the stock market advise taking a position in the company.
Rovi’s stock market history in 2024 is marked by ups and downs. Its shares reached all-time highs this year, but from there they began a decline that led the company to trade at levels 30% lower. At that time, analysts worsened the pharmaceutical company’s recommendation until it was the worst in four years and it was at the bottom of the ranking, occupying the 32nd position, the worst it had ever busy in its history as a member of the selective. .
The correction in Rovi stock is mainly responsible for the improvement in this recommendation over the last few months. The pharmaceutical group’s shares fell from more than 90 euros to around 62 euros. “We attribute the latest falls to recent downgrade of Moderna guides by 2025 and the reduction in the number of candidates for the acquisition of its CDMO division (its manufacturing subsidiary on behalf). Again, We believe that current levels of ads provide an attractive entry point“, explained the Banco Sabadell analysis team at the most critical times for Rovi on the stock market.
Finally, a few weeks ago, Rovi announced that it was ruling out the sale of part of this subsidiary after examining the various offers received, news that once again had a downward impact on the stock of the society. “HAS despite While it is true that the company has good long-term prospects, the opportunity to crystallize this outlook is lost. short-term value, which indicates that sufficiently attractive offers have not been received”, they emphasized after learning the news of Renta 4.
These price corrections occurred at the same time as analyst valuations were not experiencing significant declines. Thus, experts continue to see Rovi shares reaching new all-time highs in the following months, estimating their price target at 93 euros on average, which leaves them an upward journey of just over 48% above current levels. It is also established as one of the companies in the main Spanish index with the longest history. Up to two investment banks raise price fair for Rovi above 100 euros. With this value, Rovi’s potential would increase to 61%.
Generally speaking, vaccine manufacturers, like Rovi, have recently been hurt by Donald Trump’s election of Robert F. Kennedy Jr. as secretary of the Department of Health and Human Services (HHS). Kennedy has anti-vaccine positions and, in fact, came to connect them with Nazi Germany. Upon his nomination, Trump asserted that, with Kennedy Jr. at the helm, HHS would help “ensure that everyone is protected from the harmful chemicals, contaminants, pesticides, pharmaceuticals and food additives that have contributed to to the overwhelming health crisis” in the United States.
“ANDThe impact of the possible nomination of Robert F. Kennedy is difficult to quantify, although, in our opinion, this should be limited, as we believe that vaccination rates in the United States, once raised to the level the endemic phase, will largely depend on the willingness of each person to be vaccinated, and we understand that it should remain stable and focused on the age group above 60 years,” says Renta 4.
Quarterly results
On November 7, the pharmaceutical company released its results for the third quarter of the year. The company beat analysts’ gross profit estimates by nearly 15%. recording an EBITDA of 97.3 million euros, compared to the 84.8 million expected by analysts and the 74 million for the same period of the previous year.
For the full year, experts expect gross profit to reach 238.1 million euros, which represents a slight decrease compared to the 244 million achieved the previous year. This contraction in profit will, however, only be temporary and for 2025 analysts set Ebitda at 264 million euros (i.e. growth of 11% in one year), or only 5% of the record recorded in 2022, a little more than 278 million. By 2026, analysts expect historic EBITDA of 337 million.
