Wednesday, December 8

The market overlooks Rovi’s new strategy


Rovi He arrived at his Investor Day with his homework done: good results and good prospects to comply with the guidelines. Therefore, investors needed a strong announcement to rethink a different operation on the value.

The investors’ vision was shared by the investment entities and brokers that follow the stock and that after the presentation of the new strategy to the market did not make any changes in their valuation of the company.

The most innovative message at the account level is that it expects to reach the operating income target forecast for 2023 this year, set in the range of 588-609 million euros. Getting ahead of a target by this margin is nothing new for Rovi.

The ebitda target for 2023 is achieved

That same year, in each presentation of results, he has made an upward revision of the guides for the course. The experts consulted agree that this situation is produced by a highly conservative board of directors with the figures released to the market.

Therefore, the visibility that Rovi offers is always high, with other examples such as that the EBITDA achieved up to September already means reaching the target set for this item in 2023, 158 million euros.

With this framework, the market also discounts that it will be very feasible to achieve the goal of closing 2021 With an increase in operating income to a range between 40 percent and 45 percent and the objective of increasing it in the middle band of the first ten, over 5 percent, in 2022 it is classified by the market as too conservative.

Moderna’s lens crop does not affect Rovi

The agreement with Moderna, which is growing and Rovi is working to become a long-term partner of the American company, is powerful enough to meet the market. Thus, Rovi closed the first nine months of the year with an increase in the manufacture of third-party products of 187 percent in the interannual rate thanks to this agreement.

Modern dependence is high and the price reflects it. Moderna’s announcement that it lowered its manufacturing and sales forecasts for the east coronavirus vaccine and next year caused Rovi to drop 9.68 percent in a single session.

Instead, the experts called for calm and recalled that the conservatism of the Rovi guides is such that the communication of cuts of objectives of Moderna is foreign to the Spanish.

Treatment for schizophrenia as a new catalyst

Stocks have not yet recovered from the impact, they have fallen slightly more than 5 percent since Moderna’s communication in early November, while Investor Day had no effect on the price and a date was given for the market launch of a new drug.

The Madrid laboratory hopes to obtain authorization for the sale of its drug in February 2022 Risperidona ISM against schizophrenia after having to stop the process in March to repeat studies. The first market where it hopes to distribute it is in Germany during the second trimester.

A Spain would come to the end of next year and in the United Kingdom in the third trimester. The drug would be marketed under the name of Okedi at Old continent and in whats United States under the name of Rssvan.

Prospects are favorable with another product in 2023

Rovi hopes to obtain the approval of the FDA in the third quarter of 2022 to later activate the commercialization, after the US supervisor halted its assessment by wielding a few months ago that it should visit the Rovi plants in Madrid and that the mobility restrictions because of the coronavirus they were prevented from doing so.

Experts also agree that both Risperidone and the agreement with Moderna are and will be the great catalysts for action in 2022, which may be moderate in benefits, but in the face of a brighter 2023, since, in principle, the Letrozol, breast cancer treatment.

Rovi’s price shows no signs of depletion as it is advancing more than 50 percent in the year and the market consensus gives it a potential of more than 10 percent for the next 12 months. In addition, the panel of experts that Bloomberg collects does not register any recommendation to “sell” and 91.7 percent of analysts urge to “buy”.



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