RBC Updates Model for Roche After 'Solid' Q3 Results

12:46 AM EDT, 10/23/2026 (MT Newswires) -- RBC Capital Markets revised its model for Roche (RO.SW) after the Swiss drugmaker reported "solid" third-quarter results and affirmed its full-year 2026 outlook. "3Q26 results and reiterated guidance met expectations. Management targets similar 2027 growth momentum as 2026 (mid-single digit %), aligned with consensus (+5%; RBCe +4%). While we maintain our Outperform rating based on strong execution and a robust 2027 pipeline, we acknowledge valuation is elevated and near-term uncertainties persist. The quarter left key questions unanswered on the Giredestrant launch (Year 1 target: CHF 500-600m), where Bridge program dynamics obscure visibility and the base business faces competitive pressures. Execution will be key for sentiment. We see upside optionality longer-term but emphasize patience as management delivers on milestones," analysts said Thursday, adding that their price target of 400 francs was also maintained. Against this backdrop, the research firm raised its 2026 revenue and EPS projections to 64.7 billion francs and 21.32 francs, respectively, from 64.1 billion francs and 21.14 francs. RBC also updated its 2027 top-line growth assumption to 3.9% year over year to 67.3 billion francs alongside its bottom-line growth estimate to 4.7% to 22.32 francs. For the fourth quarter of 2026, the research firm noted key catalysts include the divarasib data presentation, Itovebi phase 3 data, and US regulatory decisions for Gazyva and Giredestrant. Looking ahead to 2027, the main drivers include US commercial launches for Giredestrant and divarasib, multiple late-stage trial readouts, and anticipated approval for fenebrutinib, among others.