Roche’s shares trade on the SIX Swiss Exchange under the ticker symbol ROG. There are also non-voting equity securities listed.
Roche Holding AG, commonly referred to as Roche, is a leading Swiss multinational healthcare company. Founded in 1896, it has a rich history in developing, manufacturing, and distributing healthcare products. Today, Roche stands as one of the world’s biggest players in the biopharmaceutical industry.
The current Roche Chief Executive is Dr Thomas Schinecker. He became CEO in 2023 after working his way through the ranks of the company, starting in 2003.
Roche boasts a diverse portfolio of healthcare solutions across various segments. The company operates through two main divisions: Pharmaceuticals and Diagnostics. The Pharmaceuticals division focuses on developing innovative treatments across major disease areas. Meanwhile, Diagnostics develops innovative tools for disease detection and monitoring. The company says its diagnostics unit combines “science, data and insights to transform the way diseases can be prevented, diagnosed and monitored.” Both divisions are supported by the company’s central research organisation and a dedicated services unit.
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Pharmaceutical Industry Comparison
Roche Holding AG EPS and Revenue Breakdown 2020-2023
| Roche | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | CHF 16.52 | CHF 58.32 billion |
| 2021 | CHF 16.20 | CHF 62.80 billion |
| 2022 | CHF 15.53 | CHF 63.28 billion |
| 2023 | CHF 14.30 | CHF 58.72 billion |
Roche Dividend Yield
The Roche share price has had a tough couple of years after hitting its high in April 2022. It is currently back trading around levels last seen in 2018 after a more than 11% decline so far in 2024 (as of April 26).
Roche Holding is a dividend-paying company. Its current dividend yield is 4.37%.
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Roche Share Price Forecast
In April 2024, analysts at Kepler Cheuvreux raised its rating for Roche shares to Buy from Hold with a new price target of CHF 285, down from CHF 306. The investment firm told investors it sees “multi-billion potential” for the company’s Alzheimer’s treatment. They added that its “potentially extremely potent” weight loss drug data could come this year.
In March, Argus cut Roche to Hold from Buy, stating that they believe the company’s earnings and revenue prospects offer limited growth potential. The firm acknowledged that Roche has a strong line-up of products but noted that some of the drugs are maturing and face competition from biosimilars. Despite the neutral view, the firm added that it would consider raising the stock’s rating if it were to see sustained margin growth, signs that earnings or revenue growth will begin to speed up, or the launch of a new blockbuster product.
Overall, according to data compiled by The Wall Street Journal, eight analysts have a Buy or Overweight rating on Roche, eleven have a Hold rating, and four have a Sell or Underweight rating on Roche shares. The current average price target is CHF 272.33 per share.
Our View: While Roche has a strong pipeline, investors will need to carefully assess the current headwinds that have impacted the stock over the past couple of years. For some, this may provide an attractive entry point, but as always, the risks should be carefully considered.
Suitability
Roche invests heavily in research and development, suggesting potential for long-term growth. If you share this optimistic outlook and have a long investment horizon, ROG could be a good fit. The company also forms part of the Swiss Markets Index and can therefore be picked up as part of a basket of top Swiss stocks.
The pharmaceutical industry experiences ups and downs due to factors like clinical trial results, regulations, and patent expirations. Evaluate your comfort level with this inherent volatility and your risk tolerance before investing.
Do you prioritise potential for future growth or a stable, established company? Roche’s strong pipeline suggests growth potential, but recent price movements may not yet reflect that.
Roche offers a dividend, providing a potential income stream. Analyze Roche’s dividend history and future payout projections to see if it aligns with your income needs.
The pharmaceutical industry faces various challenges, including patent expirations, government regulations, and clinical trial failures. Investors comfortable with this volatility might find Roche suitable.
