Viatris Inc. (NASDAQ: VTRS) is a pharmaceutical company that provides medicines and long-term therapy to patients in more than 165 countries. Its portfolio is diversified into Brands, Complex Generics and Biosimilars, and Generic divisions, contains approximately 1,400 authorized compounds across a variety of therapeutic areas that tackle both communicable and non-communicable disorders.
Why Should Investors Book Profit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
VTRS' share price has inclined 16.13% in the past three months and is currently leaning towards the higher band of the 52-week range of USD 10.88 to USD 16.29. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 12.76.
Considering the company's disinvestment of key business assets, leveraged balance sheet, weak liquidity profile, current valuation and associated risks. we recommend a "Sell" rating on the stock at the closing price of USD 14.54, up 4.38% as of February 25, 2022.
Three-Year Technical Price Chart (as of February 25, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.