Friday, March 29

Rovi: a demanding bet compared to its peers


The decline of more than 15 percent of the titles of Rovi in the IBEX 35 since the beginning of the year it left the value above 61 euros and moved away from the historical maximums registered at the end of 2021 at 73.80 euros.

The situation of the action reflects the levels of demand at which the Madrid laboratory is listed after landing in the IBEX 35.

Investors look closely at their operations on Rovi after the great performance until this year and the main metrics they monitor are more favorable for their competitors of the main selective of the Spanish Stock Exchange.

Earnings per share (EPS) is always attractive when taking a position in a security and in this plot Pharmamar outperforms Rovi today and in projections consensus within one year.

Rovi has a BPA of 2.03 euros at the moment, compared to 3.63 euros for Pharmamar, and it is expected to improve to 2.33 euros over 12 months, compared to 3.37 euros for Pharmamar in the same period. Of course, it is higher than the 0.92 euros that it projects Grifols and the 0.44 euros of Almirall.

The second highest PER of the IBEX 35

The PER, the price-earnings ratio that measures the cost of a share with respect to the return, does not play in favor of the Madrid laboratory either, since the theory says that the higher the PER, the more expensive a share is.

Rovi’s current PER is 30.91 times and not only is it the highest among the rest of the selective pharmaceutical companies, but it is also the second highest of the entire IBEX 35.

Estimates reflect a drop to 26.92 times, but it would continue to be higher at 25.56 times that of Almirall, 17.60 times that of Grifols and 16.17 times that of Pharmamar.

The rise of 2021 does not help the potential

The revaluation potential of Rovi’s shares is the lowest among the four pharmaceutical companies, but as a result of the 94.72 percent rise registered by the shares last year.

Rovi shares entered 2022 with exhausted potential and following falls this year now offer an average potential of 15 percent.

The revaluation occurs when trading above 61 euros and throwing a average target price of 70.13 euros, below its all-time high.

The rest of the companies suffered on the stock market last year and the trend continues, so, as far as the price is concerned, they could rise more in an estimated period of 12 months.

Pharmamar would advance 60 percent, to 88.54 euros per share, Grifols would rise 50 percent, to 24.63 euros, and Almirall would rise 27 percent, to 14.03 euros, according to estimates from the panel of experts that collects Bloomberg.

The solidity of the business, the greatest prop

Rovi has the capacity to respond to these metrics thanks to its results, an ability to exceed the announced guidelines and a business visibility two years ahead that is superior to that of the rest of the pharmaceutical components of the IBEX 35.

The company founded and controlled by the family Lopez-Belmonte closed each quarter of 2021 exceeding consensus forecasts and company guidelines, although experts point out that this is also due to an “excessive conservatism” of the board of directors.

The lab intends close 2021 fulfilling the key objectives of the strategic plan that ends in 2023. To date, they have already reached the ebitda goal set at 158 ​​million euros.

The company’s calculations estimate that it will also be able to reach the end of 2021, achieving operating income within the range of 588-609 million euros set for next year.

Consequently, it remains to be discounted that the accounts that are expected to be presented on February 23 will reflect the objective of increasing operating income between 40 percent and 50 percent.

The objective for this course is more conservative, growth in the average band of the first ten, above 5 percent, since the agreement with Modern for the manufacture of the vaccine will continue to impact the accounts and the arrival on the market of a new drug.

Rovi expects to start marketing Risperidona ISM, drug against schizophrenia, in Germany next month. In the third trimester it would reach U.S and in the United Kingdom at the end of the year Spain.

2023 will also be a year for a new drug, Letrozol, a treatment for breast cancer. The outlook is enthusiastically picked up by the market consensus and the stock posts 75 percent “buy” advice and no “sell” advice from the expert panel it compiles. Bloomberg.



www.finanzas.com