Analyst Douglas Tsao from H.C. Wainwright maintained a Buy rating on Roivant Sciences (ROIV – Research Report) and increased the price target to $18.00 from $17.00.
Douglas Tsao has given his Buy rating due to a combination of factors surrounding the promising results of Roivant Sciences’ drug candidate, brepocitinib, and the company’s aggressive share repurchase program. Brepocitinib has shown significant potential in treating non-infectious uveitis (NIU), with positive outcomes in its Phase 2 NEPTUNE study, surpassing the effectiveness of the current approved treatment, Humira. The drug not only met all primary and secondary endpoints, but it also exhibited a lower rate of treatment failure and demonstrated potential in preventing and resolving edema. These encouraging results, along with plans for a Phase 3 study, position brepocitinib as a potential blockbuster and justify Tsao’s raised price target for Roivant Sciences.
Additionally, Tsao’s optimistic outlook is supported by Roivant Sciences’ strategic capital allocation, notably its recent announcement of a substantial share buy-back initiative. The repurchase of shares from Sumitomo Pharma, reducing outstanding shares by 9%, coupled with a broader $1.5 billion share repurchase program, reflects a strong commitment to shareholder value. The company’s robust cash balance following the sale of Telavant and the proactive management of this capital through business development opportunities further underscore the confidence in Roivant Sciences’ financial strategy and growth prospects, reinforcing the Buy rating.
Tsao covers the Healthcare sector, focusing on stocks such as Coherus Biosciences, Crinetics Pharmaceuticals, and Praxis Precision Medicines. According to TipRanks, Tsao has an average return of 8.8% and a 41.24% success rate on recommended stocks.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $15.00 price target.
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Roivant Sciences (ROIV) Company Description:
Montes Archimedes Acquisition Corp is a blank check company.
Read More on ROIV:
- Roivant Announces Positive NEPTUNE Study Results for Brepocitinib in NIU, as well as Board Authorization for up to $1.5 Billion Share Repurchase Program, Including Repurchase of Entire Sumitomo Pharma Stake for $648 Million
- Roivant Sciences to replace Sunrun in the S&P 400 at open on 4/1
- Sunrun to replace PGT Innovations in the S&P 600 at open on 4/1
- Roivant Sciences call volume above normal and directionally bullish
- JPMorgan reiterates Overweight ratings on Roivant, Immunovant
