What changed
$OGN — BUY 📊
Organon & Co.
🎯 Q2 2026 | Rev $1B | EPS $0.71 vs $0.85 🔴
💡 Consensus expects continued earnings decline after the miss, pricing in no recovery with a P/E of ~5x. Our variant view is that the miss was transitory and normalized earnings power is $3.20-$3.50 per share, implying >60% upside from current levels. The market is overly extrapolating the miss and ignoring the biosimilar business's volume growth.
📉 Reward/Risk: 2.94:1
🏢 Business Quality: 3/10 - Mature product portfolio with patent cliffs, high debt, but strong cash generation and niche women's health leadership.
📊 Valuation: cheap - P/E 4.5x (forward), EV/EBITDA 6.5x, FCF yield 12%, all at multi-year lows and below peers like Teva (8x P/E) and Viatris (5x EBITDA).
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/OGN0622