Savvy Trades and Investments

[abh3vt]

INDV hit hard this AM by a reduction in its guidance for FY24. Looks like the operating income will be slightly up vs FY23, but this management team is now in the penalty box. There were concerns after the Q1 report, but those were just a beginning of what will be a tougher year ahead than expected. Seems like a bit of an over-reaction (-39% premarket), but when you've got a bunch of investors/traders who hate the prospect of having to wait 3-4 quarters for growth to resume, its usually sell first. My own expectations are that adj eps will now be roughly flat vs FY23, but that is also because of a higher tax rate (24%) v 19% last year. The stock repurchase program will continue and that will help, but I don't expect much of a meaningful growth catalyst until we lap this quarter next year. Stock is now trading at 6x adj earnings.....which is a similar valuation to where some other specialty pharmas I follow trade.