VTRS - Embedded Expectations Analysis - 2021 08 10
Viatris Inc. (VTRS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 22.0x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about progress on their pipeline, ongoing pandemic-induced headwinds, and meeting their financial targets.Moreover, management may lack confidence in their ability to maintain strong financial results, deliver their financial targets, and further pay down their debt. Furthermore, they may be concerned about the pace of their pipeline projects' progress and the sustainability of their forex tailwind. Additionally, they may lack confidence in their ability to gain more benefits from their working capital improvement initiatives and remain on track with their product launches. Moreover, they may have concerns about the degree to which pandemic-induced surge buying continues to impact their U.S. market and the impact of the Lyrica loss-of-exclusivity on their business.
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