Roche May Have as Much as $60b for ‘Inorganic Growth:’ Goldman
2014-10-22 07:28:20.348 GMT
By Chiara Remondini
Oct. 22 (Bloomberg) -- Goldman Sachs estimates Roche will
generate ~$100b in cash through 2018, says may have $30b-$60b of
incremental cash (post capex, div.) for “inorganic growth,”
according to note dated yday.
* Says consensus estimates see ~$15b/$44b in cumulative capex,
div. payments over period, leaving ~$32b in unused cash by
end-2018 (post InterMune deal)
* Consensus doesn’t reflect potential to increase div. payout
or source inorganic growth, which may add ~300-400bps to
top-line/EPS CAGR over considered period; notes co.’s
balance sheet policy which aims for net debt to asset ratio
of 0%-15%
* Estimates div. may increase at ~13% CAGR in 2013-2018 vs
consensus of 8%
* Reiterates conviction buy
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal
2014-10-22 07:28:20.348 GMT
By Chiara Remondini
Oct. 22 (Bloomberg) -- Goldman Sachs estimates Roche will
generate ~$100b in cash through 2018, says may have $30b-$60b of
incremental cash (post capex, div.) for “inorganic growth,”
according to note dated yday.
* Says consensus estimates see ~$15b/$44b in cumulative capex,
div. payments over period, leaving ~$32b in unused cash by
end-2018 (post InterMune deal)
* Consensus doesn’t reflect potential to increase div. payout
or source inorganic growth, which may add ~300-400bps to
top-line/EPS CAGR over considered period; notes co.’s
balance sheet policy which aims for net debt to asset ratio
of 0%-15%
* Estimates div. may increase at ~13% CAGR in 2013-2018 vs
consensus of 8%
* Reiterates conviction buy
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal