Viatris Inc. Faces Mixed Performance Despite Strong Q2 Results
Viatris Inc. (VTRS), a pharmaceutical firm located in Canonsburg, Pennsylvania, provides a range of prescription medications, including brand-name, generic, and complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). As of now, the company has a market capitalization of $13.9 billion and operates in several sectors: Developed Markets, Greater China, JANZ, and Emerging Markets.
Year-to-Date Performance Falls Short of the Market
In the past year, Viatris has struggled to keep pace with the overall market. The company’s stock has increased by 7.2% year-to-date and 25.2% over the last 52 weeks, compared to the S&P 500 Index’s gains of 21.2% in 2024 and 32.7% over the prior year.
Comparing to the Pharmaceutical Sector
Looking closely at the industry, Viatris’s performance also trails behind the SPDR S&P Pharmaceuticals ETF’s (XPH) 11.3% year-to-date growth, though it has outperformed XPH’s 24.1% returns over the past year.
Positive Q2 Earnings Report Sparks Investor Interest
On August 8, after releasing its Q2 earnings, shares of Viatris climbed by 6.5%. The company reported an adjusted EPS of $0.69, surpassing market expectations. Although there was a minor decline in revenue compared to last year, strong results in emerging markets and Greater China—as well as robust sales from newly launched generic products—helped to increase investor confidence. Moreover, Viatris raised its revenue projections for new products in 2024, estimating between $500 million and $600 million, which further boosted sentiment.
Analyst Predictions for Fiscal Year 2023
For the fiscal year ending in December, analysts anticipate a decline of 8.9% in adjusted EPS, forecasting a total of $2.67. Historically, the company’s earnings surprises are mixed; it has beaten Wall Street’s estimates in two of the previous four quarters but missed in the other two.
Current Analyst Ratings Reflect Cautious Optimism
VTRS currently holds an overall consensus “Hold” rating. Out of six analysts covering the stock, one recommends a “Strong Buy,” three suggest “Hold,” one rates it as “Moderate Sell,” and one has a “Strong Sell” rating.
Analyst Insights and Future Price Targets
On October 16, analyst Glen Santangelo from Jefferies reaffirmed a “Buy” rating for VTRS, setting a price target of $15—the highest on the street. This target suggests a 29.2% upside from the current level. Meanwhile, the average price target is $13.20, indicating a potential upside of 13.7% based on current prices.
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On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All information and data are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
