RBC Starts Roche Coverage at Outperform on Base Business Improvement, 'Underappreciated' Pipeline

01:53 AM EDT, 09/09/2026 (MT Newswires) -- RBC Capital Markets initiated its coverage of Roche (RO.SW) at outperform, with a price target of 400 francs, highlighting the Swiss drugmaker's strengthening core business and its "underappreciated" pipeline. "In the near-to-mid-term the base business is gaining momentum, while the pipeline offers deeper potential than Street models, in our view. The crown jewel is giredestrant, a potential c.$14bn opportunity (vs. consensus $9.3bn) targeting the large HR+/HER2- breast cancer population with extended adjuvant treatment duration. We believe Roche is a quality compounder with sustained growth visibility through 2030+, warranting a premium for its pipeline optionality and a lack of [loss of exclusivity] pressure," the research firm said Tuesday, adding it sees further re-rating upside even as the stock's valuation reaches an "all-time high." "We believe the base business is building meaningful momentum, notably the growth drivers (Ocrevus, Hemlibra, Phesgo). We see this driving upgrades in the near-term (2026e: RBCe CHF63.1bn vs. cons. CHF62.5bn), as well as longer-term (2030e: RBCe CHF77.6bn vs. cons. CHF74.1bn)," analysts added. RBC noted that consensus projections for Roche's drugs, including giredestrant, enicepatide, pegozafermin and fenebrutinib, remain below its estimates, creating room for upward revisions as these assets de-risk. Analysts said near-term catalysts include the third-quarter Roche Pharma Day investor event and sefaxersen late-stage data, followed by key fourth-quarter milestones like the giredestrant approvals and CT-996 obesity phase 2 readouts.