Evaluating Viatris (VTRS) Valuation After Strong Q3 Results and Upbeat 2025 Guidance

Viatris (VTRS) drew extra attention this week after releasing third quarter results that topped estimates and then raising its full-year 2025 revenue and earnings guidance. This signaled continued momentum for the company.

See our latest analysis for Viatris.

Viatris’s latest quarterly win and raised guidance have clearly caught investors’ attention, sending the share price up more than 10% in a single day and nearly 15% over the last month. While this momentum is encouraging, it follows a tougher broader run. Viatris’s total shareholder return is still down about 9% over the past year, despite solid improvement in its three-year track record. With the recent focus on M&A and innovation, optimism seems to be returning, but the long-term picture remains a work in progress.

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With the stock still trading at a discount to analyst targets following a recent run, the key question is whether Viatris is undervalued after these results or if the market has already priced in its path to growth.

Most Popular Narrative: 6.7% Undervalued

With a narrative fair value of $12 per share compared to the most recent close at $11.20, market-watchers are weighing signs of a potential upside as Viatris pivots to sustained growth through evolving strategic initiatives.

The company is well-positioned to benefit from sustained demand growth due to global population aging and increasing chronic disease prevalence. This is demonstrated by positive late-stage pipeline developments in chronic disease, pain, and ophthalmology, which set the stage for long-term revenue growth through new branded and generic launches in large, underserved markets.

Read the complete narrative.

Want to understand what makes analysts believe Viatris could defy expectations? This narrative hinges on unusually optimistic profit margin transformation and a revenue outlook that would surprise most. Intrigued how future growth, improved efficiency, and a bold valuation multiple connect? Discover the eye-opening drivers behind this fair value call.

Result: Fair Value of $12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing price pressure in key markets and delays in new product approvals remain key risks that could limit Viatris's long-term growth potential.

Find out about the key risks to this Viatris narrative.

Build Your Own Viatris Narrative

If you see things differently or want to dive deeper into the numbers yourself, you can put together your own story in just a few minutes. Do it your way

A great starting point for your Viatris research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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