OGN -.48 to 11.79, you were wise to sell in the $14's, but this selloff to the $11's looks overdone to me .... it's now selling at just a 3.4x forward PE assuming earnings stabilize at this level .... of course, they have a lot of debt to deal with, so that could become problematic. Maybe tax loss selling will drive it down into the single digits by year end ? Is there a price you'd get back in after your 30 day tax loss restriction completes ?
Analysts still have rather lofty price targets -
fly -
Goldman Sachs downgraded Organon to Neutral from Buy with a price target of $16, down from $33. The company's Q3 results and management's commentary "included an agglomeration of issues," the analyst tells investors in a research note. The firm says that while the Established Brands business again demonstrated resilience, disappointments were several, including sales misses across the portfolio, meaningful enough exposure to challenging economic and policy dynamics playing out in China, and a more modest than expected revenue opportunity for Hadlima. Goldman believes time and improved visibility will be needed to sustainably support a positive inflection in sentiment.
Barclays analyst Balaji Prasad lowered the firm's price target on Organon to $25 from $28 and keeps an Overweight rating on the shares. Post the 15% fall on the Q3 miss, the firm believes Organon's valuations have troughed. The analyst says the Microspherix settlement was better than expectations.
