Roche Cut to Sell as US Investment Bank Warns of Downside to Consensus Estimates

Morgan Stanley downgraded Roche (SWX: ROG) to “Underweight” from “Equal Weight” in a note Friday, cutting its price target to $39 from $44. 

The bank cited weaker prospects versus market expectations due to rising competition, delays in new product launches, and upcoming “high risk” clinical readouts.

The U.S. investment bank said Roche’s pipeline momentum is likely to remain subdued into 2026, adding that the stock’s current valuation “looks demanding.”

The move follows an April downgrade from HSBC, which lowered Roche to “Hold” from “Buy,” trimming its price target to CHF 295 from CHF 338. 

HSBC cited a crowded investor base and the view that key catalysts for the shares had already played out.

According to TradingView data, of 23 analysts covering Roche, 10 rate the shares “Buy,” nine have a “Hold,” and four recommend “Sell.” 

The average target price from 20 analysts providing targets for the stock stands at CHF 296.7, implying more than 20% upside from the current level of CHF 246.6.

Roche, one of the world’s largest drugmakers, has faced pressure as biosimilar competition erodes sales of older medicines, while some recent product launches have been slower to gain traction.