BMO Downgrades Viatris As Its Looks For More Visibility On Next Phase

BMO Capital Markets has downgraded Viatris Inc VTRS to Market Perform from Outperform and lowered the price estimate to $14 from $16.
The analyst writes that Viatris has progressed well with strategic initiatives, but the stock could be rangebound.
BMO seems bullish on the Biocon biosimilars sale (closed November) but says the company lacks visibility on the timing/magnitude of the next set of planned divestitures.
It also notes the uncertainty on peak potential for the newly acquired Eye Care franchise (well below >$1 billion target by 2028).
If numbers end up much better than expected, and if Viatris sells EU OTC business near-term for a better-than-expected valuation, BMO analyst expects stock appreciation.
The analyst says the base business seems stable, but strong execution on the pipeline will be the focus. The company needs to target ~$500 million in new product revenue annually to offset base erosion, but there is a lack of good visibility.
Price Action: VTRS shares are down 0.09% at $11.64 on the last check Friday.

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