Piper Sandler has increased its price objective for Viatris (NASDAQ: VTRS) to $12.00, up from $9.00, while keeping a Neutral recommendation on the stock ahead of the drugmaker's fourth-quarter 2025 earnings release. The research firm attributed the higher target to the resilience of Viatris's branded medicines across several markets and the expectation that new product introductions will continue to provide steady revenue in developed regions.
The upgrade in the price target follows a notable share-price rally. Viatris stock has climbed about 33% since the beginning of the fourth quarter of 2025, a gain Piper Sandler links to investor anticipation around substantial cost reductions tied to the company's enterprise-wide strategic review. The firm said management is likely to give more detail on those cost-saving measures when Viatris reports fourth-quarter results in late February 2026.
Despite acknowledging the potential for margin improvement and a leaner cost structure, Piper Sandler cautioned that any meaningful re-rating of Viatris's valuation - currently near an EV/2026E EBITDA of roughly 6x - should be conditional on successful outcomes from the company's brand research and development pipeline. The firm specifically called out cenerimod and selatrogel as programs that carry high risk as well as the potential for high reward, underscoring the importance of R&D execution to justify a multiple expansion.
Separately, Viatris reported third-quarter 2025 results that exceeded analyst expectations. The company posted earnings per share of $0.67, compared with the consensus estimate of $0.62, and generated revenue of $3.76 billion versus a forecast of $3.61 billion. Alongside the financial beat, Viatris said it achieved four regulatory milestones, highlighted by a significant U.S. Food and Drug Administration approval for a generic injectable product - the firm's fourth injectable FDA approval in 2025.
On the corporate-governance front, shareholders elected thirteen director nominees at the company's 2025 annual meeting and approved executive compensation. Investors also voted to appoint Deloitte & Touche LLP as the independent auditor. As part of a broader transformation initiative, Viatris created a new executive role - Chief People and Corporate Affairs Officer - and named Lara Ramsburg to that position.
For investors and market participants, the near-term focus will be on the late-February earnings call, where management is expected to outline the scope and timing of anticipated cost savings. While the firm's financial results and regulatory wins provide near-term positive momentum, Piper Sandler's stance emphasizes that longer-term valuation gains will likely depend on the commercial and clinical success of the company's branded R&D portfolio.
In sum, the research note frames Viatris as a company showing operational progress and regulatory traction, but still reliant on key R&D milestones and explicit evidence of sustainable cost reductions before analysts expect a material re-rating of its valuation.