BeiGene stock target raised to $308 on strong FY results

Published 27/02/2025, 22:26
BeiGene stock target raised to $308 on strong FY results

On Thursday, analysts at Jefferies raised the price target for BeiGene Ltd. (NASDAQ:ONC) (NASDAQ: BGNE) shares to $308 from $286, while maintaining a Buy rating on the stock. The increase follows BeiGene’s announcement of robust financial results for the full year. The stock, currently trading near its 52-week high with a 40% year-to-date return, has caught investors’ attention. InvestingPro data shows the company commands a substantial market capitalization of $27.64 billion.

BeiGene reported a full-year revenue of $3.8 billion, marking a 55% increase year-over-year, which surpassed the consensus estimate of $3.7 billion. This surge in revenue was attributed in part to the performance of Brukinsa, the company’s cancer treatment, which generated $828 million in the fourth quarter alone. This figure represents a 20% sequential increase from the previous quarter, exceeding the consensus estimate of $735 million. For the year 2024, Brukinsa’s revenue soared by 105% year-over-year to $2.6 billion, supported by stable net pricing. InvestingPro analysis reveals impressive gross profit margins of 83.67%, highlighting the company’s operational efficiency. (Subscribers can access 12 additional ProTips about BGNE’s performance.)

The company provided guidance for the upcoming fiscal year, projecting revenues between $4.9 billion and $5.3 billion, which would translate to a year-over-year growth of 29% to 39%. Additionally, BeiGene reaffirmed its expectation to reach GAAP breakeven in 2025.

The raised price target by Jefferies to $308 reflects the company’s guidance and anticipated growth in the chronic lymphocytic leukemia (CLL) franchise. The next significant event for BeiGene investors and analysts will be the updates from the American Society of Clinical Oncology (ASCO), with particular attention on updates related to CDK4, CDK2, and B7H4 inhibitors.

In other recent news, BeiGene reported better-than-expected fourth-quarter results, showcasing significant growth driven by its cancer drug, Brukinsa. The company posted a Q4 loss of $0.11 per share, which was substantially narrower than analysts’ estimates of a $0.88 per share loss. Revenue increased by 78% year-over-year to $1.13 billion, surpassing the consensus forecast of $1.05 billion. Brukinsa, BeiGene’s flagship drug, generated $828 million in global sales for the quarter, marking a 100% increase year-over-year. In the United States, Brukinsa sales nearly doubled to $616 million, with the drug becoming the market leader for new chronic lymphocytic leukemia patient starts. Looking ahead to 2025, BeiGene projects total revenue between $4.9 billion and $5.3 billion, exceeding Wall Street’s expectation of $4.74 billion. The company also anticipates achieving positive GAAP operating income and cash flow from operations this year. BeiGene highlighted several pipeline milestones expected in 2025, including data readouts for key solid tumor programs and potential regulatory submissions for its BCL2 inhibitor sonrotoclax in blood cancers. Additionally, the company plans to change its name to BeOne Medicines Ltd., pending shareholder approval.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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