You're not going to often hear me say that earnings don't matter, but I don't believe that Roche's (OTCQX:RHHBY)
reported financials are going to be the driving factor behind the share
price performance in 2016 and 2017. I am expecting that investors will,
instead, put more emphasis on the company's clinical trial performance,
as data read-outs over the next two years will go a long way toward
shaping the future of Perjeta, Gazyva, and atezolizumab.
My basic view of Roche remains that the company is well-placed to
play a major role in the evolving field of immuno-oncology and that
recent clinical successes in hemophilia, asthma, and multiple sclerosis
give it a little more of a balanced mix. I'm looking for Roche to
generate around 5% long-term revenue growth, largely on the back of
oncology, with additional cash flow leverage pushing the FCF growth rate
into the high single-digits. Discounted back, that supports a fair
value just shy of $36 today.
Click here to continue:
Roche's Deep Pipeline And Strong R&D Platform Make For A Long-Term Winner
No comments:
Post a Comment