Summary and Investment Conclusion — We reiterate our BUY on Roche and
increase our price target to SFr300 (from SFr280) and add Roche to Citi's EU
Focus List. Our EPS forecasts increase c.3-8% in 2018-20 and are now c.20%
ahead of consensus in 2018e. Our DCF increases to SFr306. We believe the
market is attributing minimal value to Roche's multiple high probability novel
immunotherapies in clinical development, including checkpoint blockers, immunestimulators,
DNA and peptide vaccines, bi-specific TCRs and small molecules.