BofA Sees Potential FY26 EPS Outlook Upgrade for Roche on Margin Expansion, 'Better' Tax Rate

07:06 AM EDT, 10/08/2026 (MT Newswires) -- BofA Global Research sees scope for Roche (RO.SW) to potentially raise its full-year 2026 EPS outlook, even as the Swiss drugmaker is expected to report "in-line" third-quarter sales on Oct. 22. "We see possible upgrade to current high-sd % EPS guide on potential margin expansion or better tax rate achieved in 2H, although Roche doesn't report P&L at 3Q. That said, we do not yet factor a guide upgrade into our current estimates. We see less scope for sales upgrade due to continued base business pressures," analysts said Thursday. "We flag Fx now c1% better than 2Q guide based on end-Sep rates, now -4% Group sales and -5% EBIT/EPS." The research firm forecasts third-quarter group and pharmaceutical sales to rise 5% year over year to 15.6 billion francs and 12.1 billion francs, respectively, meeting market expectations. Looking ahead to 2027, BofA models 5% annual group sales growth and expects a repeat of the 2026 outlook, with a target of mid-to-high single-digit EPS gain and mid-single-digit sales at constant currencies. Against this backdrop, BofA reiterated its buy rating on the stock, supported by a "bullish view" on near-term launches, including giredestrant, divarasib and fenebrutinib, as well as a "busier" pipeline in 2027 and 2028. The research firm has a price objective of 415 francs on the stock.