Shares of pharmaceutical company Organon (NYSE:OGN)
fell 4.7% in the afternoon session after Barclays initiated coverage on the company with an 'Underweight' rating and a price target of $7.50. The new rating was issued by analyst Glen Santangelo. An 'Underweight' rating generally suggested that the analyst expected the stock to underperform compared to the average return of other stocks covered by the firm. The specific price target of $7.50 indicated a potential downside from where the stock had been trading, likely leading to investor concern about the company's outlook.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Over the past six months, Organon’s stock price fell to $7.77. Shareholders have lost 16.1% of their capital, which is disappointing considering the S&P 500 has climbed by 14.7%. This may have investors wondering how to approach the situation.
Organon's third quarter was marked by better-than-expected top-line and bottom-line results, which were well received by the market. Management attributed the quarter’s outperformance to strong execution in its biosimilars franchise, particularly Hadlima, and effective cost controls. However, headwinds persisted in the U.S. Women's Health segment, especially for Nexplanon, which faced policy-driven declines. Interim CEO Joseph Morrissey emphasized, "Our diverse product portfolio and footprint help us to generate meaningful revenue and deliver real value to patients and communities around the world."
Shares of pharmaceutical company Organon (NYSE:OGN)
fell 2.9% in the afternoon session after the company lowered its full-year sales guidance and analysts subsequently cut their price targets on the stock. This outlook overshadowed a third-quarter report where both earnings and revenue topped estimates. Following the earnings release, Organon provided a sales forecast that fell below analysts' expectations, prompting a reassessment of the company's value. JPMorgan reduced its price target to $12 from $14, citing headwinds for the company's Nexplanon and respiratory products. In a similar move, Morgan Stanley lowered its price target to $9 from $10, while maintaining its "Equal-Weight" rating on the shares.
Pharmaceutical company Organon (NYSE:OGN) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 1.3% year on year to $1.60 billion. On the other hand, the company’s full-year revenue guidance of $6.23 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $1.01 per share was 8.5% above analysts’ consensus estimates.
Wall Street rebounded on Monday, recovering part of last week's steep losses as investors grew more confident about risk assets amid encouraging signs from Washington that the record-long government shutdown may soon conclude.
Pharmaceutical company Organon (NYSE:OGN) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 1.3% year on year to $1.60 billion. On the other hand, the company’s full-year revenue guidance of $6.23 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $1.01 per share was 8.5% above analysts’ consensus estimates.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Shares of pharmaceutical company Organon (NYSE:OGN)
fell 8.9% in the afternoon session after the company announced the resignation of CEO Kevin Ali after an internal investigation uncovered improper sales practices.
Looking for insights into the US markets one hour before the close of the markets on Monday? Delve into the top gainers and losers of today's session and gain valuable market intelligence.
Let's have a look at what is happening on the US markets in the middle of the day on Monday. Below you can find the top gainers and losers in today's session.
The session on Monday is off to an intriguing start with several stocks showing significant price gaps. Let's examine the gap up and gap down stocks in today's session.
