BeiGene stock price target raised to $334 at TD Cowen

Published 28/02/2025, 00:54
BeiGene stock price target raised to $334 at TD Cowen

On Thursday, TD Cowen showed a positive outlook on BeiGene Ltd. (NASDAQ:ONC) (NASDAQ:BGNE) as the firm’s analyst increased the price target for the biotechnology company’s shares to $334, up from the previous target of $260. The analyst maintained a Buy rating on the stock. Currently trading at $278.38, BeiGene, with a market capitalization of $27.6 billion, has seen impressive momentum with a 50.7% gain year-to-date. InvestingPro data shows analyst targets ranging from $207 to $376, reflecting diverse market opinions.

The adjustment follows BeiGene’s fourth-quarter earnings report, where the company’s cancer drug Brukinsa generated $828 million in sales, exceeding TD Cowen’s estimate of $735 million and the consensus forecast of $752 million. Notably, Brukinsa’s U.S. sales outperformed competitor Calquence and matched those of Imbruvica. According to InvestingPro, the company’s overall revenue growth reached 50.2% in the last twelve months, with an impressive gross profit margin of 83.7%.

In addition to the success of Brukinsa, BeiGene’s tislelizumab (Tisle) fell short of expectations, while products from Amgen Inc (NASDAQ:AMGN). surpassed projections. The firm’s analyst expressed optimism based on BeiGene’s strong full-year 2025 revenue guidance and the company’s forecast to achieve profitability by 2025.

The analyst also highlighted the potential of BeiGene’s pipeline, including Sonro and BTK degrader, which are in potentially pivotal testing phases. The company is making progress in developing treatments for solid tumors, with promising data expected in the first half of 2025 for drugs targeting breast, lung, and gastrointestinal cancers, including CDK4 inhibitor (CDK4i), CDK2 inhibitor (CDK2i), and B7H4 antibody-drug conjugate (ADC). InvestingPro subscribers have access to 16 additional exclusive insights about BeiGene’s financial health and growth prospects, including detailed pipeline analysis and market positioning metrics.

The raised estimates for Brukinsa were cited by the analyst in the decision to increase the price target, stating, "Raising Brukinsa ests—new PT $334 (+$74)." This reflects a significant rise from the previous target and underscores the analyst’s confidence in BeiGene’s growth trajectory and drug development progress.

In other recent news, BeiGene reported impressive financial results for the full year, with revenue reaching $3.8 billion, a 55% increase year-over-year, surpassing the consensus estimate of $3.7 billion. The company’s cancer treatment, Brukinsa, played a significant role, generating $828 million in the fourth quarter, which exceeded expectations. For 2024, Brukinsa’s revenue increased by 105% to $2.6 billion. Analysts at Jefferies responded by raising BeiGene’s stock price target to $308, maintaining a Buy rating, reflecting the company’s strong financial guidance and expected growth in its chronic lymphocytic leukemia franchise.

Additionally, BeiGene posted better-than-expected fourth-quarter results, with a narrower loss of $0.11 per share compared to the anticipated $0.88 per share loss. Revenue for the quarter surged 78% year-over-year to $1.13 billion, exceeding the forecast of $1.05 billion. The company projects total revenue between $4.9 billion and $5.3 billion for 2025, ahead of Wall Street’s expectations. BeiGene also anticipates achieving positive GAAP operating income and cash flow from operations this year. The company plans to change its name to BeOne Medicines Ltd., pending shareholder approval.

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