Roivant Sciences (ROIV) Stock Surges 20% as Three Street Firms Initiate Coverage With Positive Ratings

October 26, 2021 8:47 AM EDT
Get Alerts ROIV Hot Sheet
Price: $6.94 -0.86%

Rating Summary:
    5 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 2 | New: 11
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Shares of Roivant Sciences (NASDAQ: ROIV) are up over 20% in pre-open Tuesday after the company received positive ratings at three Street research firms.

Analysts at Jefferies, Truist and Cowen started research coverage of Roivant at Buy or equivalent. Earlier this month, Roivant closed its $7 billion SPAC deal with Montes Archimedes, agreed in May.

Cowen analyst started at Outperform as the ROIV stock price offers “a solid entry point.” Shares of the company are trading 30% lower since going public via the SPAC merger.

“We believe shares are significantly undervalued especially given that Dermavant is on the cusp of commercializing tapinarof (first-in-class topical AhR agonist) for psoriasis with $1B+ potential. We view the current levels as a solid entry point and note that we expect multiple business development deals over time to add further upside to their prospects. We are also optimistic about the potential for Roivant's computational drug discovery platform at VantAI and Proteovant’s targeted protein degrader platform, both of which we feel are overlooked by investors. Finally, Genevant’s LNP patent estate and manufacturing/delivery platform has multiple key industry partnerships that could bear fruit and we think future mRNA vaccine-related royalties may add additional financial upside, though current legal proceedings against Moderna are early and the outcome is tough to call,” the analyst said in a client note.

Similarly, Truist Securities analyst Robyn Karnauskas initiated research coverage on Roivant with a Buy rating and a price target of $15.00.

“Roivant’s novel business model underappreciated by investors, in our view; with their evolving AI technology platform and integrated drug discovery strategy, we see ROIV as a potential >$20B company in the longer-term. While at current levels, the stock is trading with credit to cash + $1B peak sales (likely to Dermavant), in the longer term, we could see significant growth supported by a sophisticated internal discovery and development engine,” the analyst said in a note sent to clients.

Shares of Roviant closed at $7.04 yesterday.

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