Viatris (VTRS) Struggles Against Market Trends Despite Positive Earnings Report
Company Overview and Recent Performance Trends
Viatris Inc. (VTRS) is a global healthcare entity established through the merger of Mylan and Upjohn, a Pfizer division, in November 2020. Based in Canonsburg, Pennsylvania, Viatris is dedicated to enhancing access to medicines and sustainable healthcare initiatives to improve patient outcomes worldwide. Currently, the company has a market capitalization of $13.2 billion and operates in various segments, including generic pharmaceuticals, over-the-counter (OTC) products, and branded medications.
Stock Performance Compared to Market Indices
Over the past year, Viatris has underperformed the market significantly. VTRS shares have declined by 8.1% in 52 weeks, whereas the S&P 500 Index ($SPX) saw an increase of 21.8%. For the year 2025, the stock is down 12.5%, in contrast to the S&P’s modest rise of 2.7% year-to-date.
Further analysis shows Viatris also lagged behind the SPDR S&P Pharmaceuticals ETF (XPH), which gained 6.3% over the past 52 weeks and 4.8% in 2025.
Strong Earnings Report Lifts Stock Price
Following its third-quarter earnings announcement on Nov. 7, Viatris shares rose over 13%. The company reported revenue of $3.75 billion and adjusted earnings of $0.75 per share, surpassing Wall Street expectations. Furthermore, Viatris confirmed its full-year guidance for 2024, expecting a steady 2% revenue growth on a divestiture-adjusted operational basis.
Marching Toward Year-End Earnings and Analyst Outlook
For the fiscal year ending in December, analysts project an adjusted EPS of $2.68 for Viatris, reflecting an 8.5% decline year-over-year. The company’s history of earnings surprises is inconsistent; it exceeded earnings estimates in two of the last four quarters while falling short in two others.
Currently, VTRS carries a consensus “Hold” rating among analysts. Out of seven analysts monitoring the stock, one rates it as “Strong Buy,” four recommend “Hold,” one advises “Moderate Sell,” and another gives it a “Strong Sell.”
Analyst Price Target and Market Insights
On Dec. 6, Piper Sandler Companies (PIPR) increased its price target for Viatris to $14 from $13, maintaining a “Neutral” rating. The firm suggests that Viatris requires sustained clinical and regulatory success with its innovative brand assets to see an improvement in its valuation. This assessment follows the company’s annual healthcare conference.
The average price target for VTRS stands at $13.17, implying a potential upside of 20.9% from current trading levels. Notably, the highest target suggested by analysts is $15, which indicates a 37.7% premium over the current market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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