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Investing.com - Benchmark raised its price target on Ligand Pharma (NASDAQ:LGND) to $175.00 from $160.00 on Tuesday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $161.71, have shown remarkable strength with a 50.92% gain year-to-date, according to InvestingPro data.
The research firm cited Ligand’s strong second-quarter 2025 earnings report as a key factor in its decision to increase the price target for the pharmaceutical company. The company has demonstrated robust growth, with revenue increasing by 40.54% over the last twelve months.
Benchmark also noted that Ligand recently completed a successful $460 million convertible bond offering, which provides additional resources for the company’s royalty monetization and project finance initiatives.
The new $175 price target represents approximately 10% potential share price appreciation for investors, according to Benchmark’s analysis.
The updated valuation is based on 16 times Benchmark’s estimated revenues for Ligand Pharma for 2025.
In other recent news, Ligand Pharmaceuticals announced the completion of a $460 million convertible notes offering, with net proceeds of approximately $445.1 million after fees. This offering included the full exercise of the initial purchasers’ option to buy an additional $60 million in notes. Earlier, Ligand had priced the offering at $400 million, with the option for additional purchases. In financial developments, Ligand reported second-quarter 2025 total revenue of $47.6 million, marking a 15% increase year-over-year and surpassing consensus estimates by about 9%. The revenue growth was largely attributed to strong performance in the Royalty and Captisol segments. Analyst firms have responded positively, with RBC Capital raising its price target for Ligand to $185 from $155, maintaining an Outperform rating. Additionally, H.C. Wainwright increased its price target to $206 from $157, continuing to recommend a Buy rating. These upgrades followed the FDA’s approval of an update to the REMS labeling for FILSPARI, which reduced liver function monitoring requirements.
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