Viatris Stock Predictions and Assessments by Financial Analysts
Viatris Inc., a healthcare company headquartered in Canonsburg, Pennsylvania (VTRS), has experienced underperformance over the past year compared to the S&P 500 Index and the iShares U.S. Pharmaceuticals ETF. This underperformance can be attributed to typical challenges in the pharmaceutical sector, such as flat organic sales growth and investor concerns about future growth prospects, despite some positive financial indicators.
Despite these challenges, Viatris reported GAAP income from continuing operations of $176 million and operating EBITDA of $798 million in its recent financial report. The company's GAAP EPS from continuing operations was $0.40, and adjusted EPS stood at $0.97. Cash from operating activities and adjusted free cash flow remain robust, yet organic sales remained flat compared to the prior year’s period.
Analysts expect Viatris’s earnings per share (EPS) for the current fiscal year to be approximately $0.97 on an adjusted basis, reflecting a raised full-year guidance for net sales, operating EBITDA, and adjusted EPS as reported recently. This raised guidance indicates some optimism but also suggests moderate growth.
The combination of flat organic sales and sector-specific headwinds likely explains why Viatris lagged behind the more diversified S&P 500 Index and the targeted iShares U.S. Pharmaceuticals ETF over the past year. The iShares U.S. Pharmaceuticals ETF has declined 1% over the past year, compared to Viatris Inc.'s performance. However, the ETF's 3.4% gains on a YTD basis outshine the stock's double-digit losses over the same time frame.
Viatris Inc.'s performance has been impacted by a setback in its generics segment due to an FDA import alert on its Indore facility. Despite this setback, the market cap of Viatris Inc. stands at $10.3 billion. The company produces medicines for patients across a broad range of therapeutic areas.
It's important to note that the Goldman Sachs Group, Inc. did not have positions in any of the securities mentioned in this article at the date of publication. Among the seven analysts covering VTRS stock, the consensus is a "Hold." The Goldman Sachs Group, Inc. analyst reiterated a "Hold" rating on VTRS.
The highest price target among analysts for VTRS is $14, suggesting a notable upside potential of 56.6%. The mean price target of analysts for VTRS is $11.18, representing a 25.1% premium to its current price levels. The Goldman Sachs Group, Inc. set a price target of $10 for VTRS, implying a potential upside of 11.9% from current levels.
For the current fiscal year, analysts expect VTRS' EPS to decline 15.1% to $2.25 on a diluted basis. It's worth mentioning that all information and data in this article are solely for informational purposes. For more information, please view the article's Disclosure Policy here.
[1] Source: Company Earnings Release, 2021-2022.
- Viatris Inc., currently facing challenges in the pharmaceutical sector and organic sales growth, is looking to diversify its business to attract investors and improve its investing prospects, given its robust cash flow and positive financial indicators.
- Despite having a high market cap and optimistic analyst price targets, Viatris Inc.'s stock performance has been poor compared to the S&P 500 Index and the iShares U.S. Pharmaceuticals ETF, due to setbacks in its generics segment and sector-specific headwinds.
