Why Roivant Sciences Stock Bounced Back on Tuesday

Key Points

• A day after it published its latest set of quarterly earnings, an analyst bumped his price target higher.

• He also maintained his equivalent of a buy recommendation.

• 10 stocks we like better than Roivant Sciences ›

Monday's hangover turned into Tuesday's party for healthcare stock Roivant Sciences (NASDAQ: ROIV). On the back of a modest but meaningful analyst price target hike, investors bid the stock up by nearly 4% following a post-earnings slide the day before. With the Tuesday rise, Roivant handily beat the benchmark S&P 500 index, which bumped 1.1% higher.

Boosting the biotech

Tuesday's raiser was Leerink Partners prognosticator David Risinger. Well before market open, he added $1 to his Roivant price target for a new level of $18 per share. In doing so, he maintained his recommendation of outperform (read: buy) on the company's stock.

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According to reports, Risinger's adjustment is based on a change in his forecast for the biotech company's share count. The analyst based this on management's statements about its share repurchase program, which is expected to shave the tally for shares outstanding.

As for Roivant's operations, the pundit waxed bullish on the eventual outcome of the company's phase 3 clinical trial of brepocitinib in the treatment of dermatomyositis, a rare inflammatory disease that can affect the muscles and the skin. He's anticipating a readout of the trial to be published in the second half of this year.

A first quarter to forget

Risinger's continued bullishness on Roivant was a morale-booster for the market, which had traded out of the company's shares after Monday's fiscal first quarter of 2026 earnings release. The company reported significantly lower revenue compared to the same period of 2025, and it flipped to a net loss on the bottom line.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Roivant Sciences. The Motley Fool has a disclosure policy.