Jefferies analyst Dennis Ding maintained a Buy rating on Indivior yesterday and set a price target of $20.00.
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Dennis Ding’s rating is based on a combination of factors that suggest a positive outlook for Indivior. The stabilization of the market dynamics between Sublocade and its competitor Brixadi, along with a clear understanding of the challenges faced by CJS, indicates a return to growth for Sublocade. Despite the consensus predicting increased operational expenses, Ding believes that Indivior’s earnings per share (EPS) potential is underestimated, forecasting a higher EPS than the consensus for 2027.
Furthermore, Ding sees significant opportunities for cost reduction, particularly in general and administrative expenses, which could enhance EPS power. The current stock price reflects a multiple of 8-9 times the projected 2027 EPS, suggesting that the market has not fully appreciated the potential for operational efficiency improvements. Ding anticipates that with effective cost management, Indivior’s EPS could grow significantly, potentially justifying a higher stock valuation in the future.
INDV’s price has also changed moderately for the past six months – from p992.000 to p1173.000, which is a 18.25% increase.