Viatris (VTRS): Assessing Valuation After New FDA Win and Pipeline Regulatory Milestones

Viatris (VTRS) just gave investors a fresh catalyst by unveiling four regulatory milestones, including FDA approval for its generic Sandostatin LAR Depot and progress on a contraceptive patch and an eye disease candidate.

See our latest analysis for Viatris.

Those regulatory wins seem to be shifting sentiment, with Viatris’ roughly 29 percent 3 month share price return at a 12.24 share price and solid 3 year total shareholder return suggesting momentum is rebuilding after a softer year to date.

If this kind of pipeline progress has your attention, it could be a good time to explore other potential opportunities among pharma stocks with solid dividends.

Yet with the stock trading close to analyst targets but at a steep implied discount to intrinsic value, the real question is whether Viatris is still mispriced or if the market is already factoring in this next leg of growth.

Most Popular Narrative Narrative: 1.6% Undervalued

With Viatris last closing at 12.24 dollars against a most popular narrative fair value of 12.44 dollars, the story hinges on slow growth, higher margins, and a rich future multiple.

The analysts have a consensus price target of $11.429 for Viatris based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $14.0, and the most bearish reporting a price target of just $8.0.

Read the complete narrative.

Curious how a low growth top line, rising margins, and a premium earnings multiple can still justify this valuation tension. Want to see the full playbook behind that call.

Result: Fair Value of $12.44 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, several fault lines remain, including persistent generic price erosion and execution risk around pipeline launches that could quickly unwind this fragile valuation reset.

Find out about the key risks to this Viatris narrative.

Build Your Own Viatris Narrative

If you see things differently or want to stress test the assumptions with your own research, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Viatris research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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