Roche Still Offers A Respectable Return As Bulls And Bears Slug It Out

I have long found Swiss drug and diagnostics giant Roche (OTCQX:RHHBY) to be a Rorschach test for the market, sell-side analysts, and myself. Given the huge number of moving parts, including significant biosimilar risk, a new generation of differentiated drugs, and a deep pipeline, there’s always news – good and bad – to drive shifts in the game of tug-of-war between bulls and bears.

Although Roche is by no means the end-all be-all in the pharmaceutical space, I believe it remains a credible core holding for those investors who don’t want to take on the risk of betting on more transformative stories (whether that’s pipeline-driven, M&A-driven, or restructuring-driven) or more speculative biotech ideas. I view Roche as more or less reasonably-valued today, but I believe “reasonable” in this case still leaves the prospect of the compounding of high single-digit returns over the long term.

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Roche Still Offers A Respectable Return As Bulls And Bears Slug It Out