Goldman downgrades Organon to Neutral on ‘agglomeration of issues’

Goldman Sachs downgraded Organon to Neutral from Buy with a price target of $16, down from $33. The company’s Q3 results and management’s commentary “included an agglomeration of issues,” the analyst tells investors in a research note. The firm says that while the Established Brands business again demonstrated resilience, disappointments were several, including sales misses across the portfolio, meaningful enough exposure to challenging economic and policy dynamics playing out in China, and a more modest than expected revenue opportunity for Hadlima. Goldman believes time and improved visibility will be needed to sustainably support a positive inflection in sentiment.