Deutsche Bank bearish on Roche heading into FY23, cuts to Sell

As previously reported, Deutsche Bank analyst Emmanuel Papadakis downgraded Roche (RHHBY) to Sell from Hold with a price target of CHF 265, down from CHF 300. In the research note, which was an EU Pharmaceuticals sector note that looked ahead to FY23, the analyst opined that Novo Nordisk (NVO) and Roche would both "break out of decade-long P/E multiple trading ranges (in opposite directions)." Papadakis sees Novo Nordisk remaining resilient short-term, but sees pressure looming in mid-FY23, but for Roche he believes the challenges will come sooner, as he has "little confidence in sufficiently strong TIGIT OS data," and sees "few catalysts beyond" and believes the consensus "remains optimistic on erosion curves for Actemra/Perjeta from 2024/25."