BMO Downgrades Viatris As Its Looks For More Visibility On Next Phase
- BMO Capital Markets has downgraded Viatris Inc to Market Perform from Outperform and lowered the price estimate to $14 from $16.
- The analyst writes that Viatris has progressed well with strategic initiatives, but the stock could be rangebound.
- BMO seems bullish on the Biocon biosimilars sale (closed November) but says the company lacks visibility on the timing/magnitude of the next set of planned divestitures.
- It also notes the uncertainty on peak potential for the newly acquired Eye Care franchise (well below >$1 billion target by 2028).
- If numbers end up much better than expected, and if Viatris sells EU OTC business near-term for a better-than-expected valuation, BMO analyst expects stock appreciation.
- The analyst says the base business seems stable, but strong execution on the pipeline will be the focus. The company needs to target ~$500 million in new product revenue annually to offset base erosion, but there is a lack of good visibility.
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