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Analyst Recommendations for Roche: Buy, Hold, or Sell?

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Jul. 27 2016, Updated 11:04 a.m. ET

Analyst recommendations

Roche Holding (RHHBY) reported earnings for the second quarter and first half of 2016 on July 21, 2016. After the earnings results, analysts updated Roche’s consensus 12-month target price to $36.85 from the $37.2 pre-earnings price. The recent consensus price translates to a ~16.8% return compared to RHHBY’s closing price of $31.56 on July 21, 2016.

As the chart above shows, out of four brokerage firms surveyed by Bloomberg on July 21, 2016, three rated Roche as a “buy,” while one rated the company as a “hold.”

Cowen issued a target price of $35 for Roche while Bernstein recommended the stock to outperform and reach $36.

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Analyst recommendations for peers

As per a Bloomberg survey of seven analysts on July 21, 2016, 57.1% of analysts issued a “buy” rating for Novartis AG (NVS), whereas 42.9% suggested a “hold.” Considering a consensus price of $94.75, Novartis presents a return potential of 14.5%.

Of 27 analysts covering Bristol-Myers Squibb (BMY), 51.9% believed it should be a “buy,” 40.7% recommended a “hold,” and 7.4% rated the stock as a “sell.” Following a consensus price of $77.5, the stock presents an upward potential of 2.6% over a 12-month period.

The Bloomberg consensus of 26 analysts as of July 21, 2016, indicated 61.5% of analysts issued a “buy” rating for Pfizer (PFE), whereas 38.5% recommended the stock should be a “hold.” The remaining 4.8% suggested a “sell.” Pfizer presents an opportunity to earn 6% over the next one year with a consensus target price of $38.9.

Given that direct investments in stocks can be risky, investors can consider options such as the Vanguard FTSE All-World Ex-US Index Fund (VEU). The fund holds 0.71% of its total holdings in Roche.

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