Citigroup initiates coverage on Roivant Sciences with Buy rating and $16 price target.

Citigroup initiates coverage on Roivant Sciences with Buy rating and $16 price target.

Citigroup has initiated coverage on Roivant Sciences Ltd (NASDAQ: ROIV) with a Buy rating and a price target of $16, according to a recent financial update [1]. The investment bank's analysts highlighted the company's strong financial position and promising pipeline of innovative medicines, particularly the Brepocitinib VALOR Phase 3 study for dermatomyositis, which is on track to release topline data in the second half of 2025. Additionally, Immunovant, a subsidiary of Roivant Sciences, has started new registrational trials for IMVT-1402 in Graves’ disease and Sjögren’s disease, with all other trials progressing well.

As of June 30, 2025, Roivant Sciences reported $4.5 billion in cash and marketable securities, which management believes supports the company's cash runway into profitability. Citigroup's analysts also praised the company's strategy of building focused subsidiary companies, known as Vants, to develop and commercialize innovative medicines.

While Roivant Sciences is considered one of the best mid-cap growth stocks by some hedge funds, Citigroup believes that the company's strong fundamentals and promising pipeline warrant a Buy rating. However, the investment bank also acknowledged that certain AI stocks may offer greater upside potential and carry less downside risk.

References:
[1] https://finance.yahoo.com/news/roivant-sciences-roiv-announces-q1-034950337.html