BioMarin stock price target raised to $95 by Bernstein following Inozyme acquisition

Published 19/08/2025, 12:56
BioMarin stock price target raised to $95 by Bernstein following Inozyme acquisition

Investing.com - Bernstein SocGen Group raised its price target on BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN) to $95.00 from $94.00 on Tuesday, while maintaining an Outperform rating on the stock. The company, currently valued at $11.04 billion, has demonstrated strong financial health with a perfect Piotroski Score of 9, according to InvestingPro data.

The adjustment follows BioMarin’s announcement of a $270 million cash acquisition of Inozyme, a single-asset enzyme replacement company, marking the first deal under CEO Alexander Hardy. The $4 per share acquisition price represents a 182% premium over Inozyme’s previous closing price, with the transaction expected to close in the third quarter of 2025. BioMarin’s strong financial position, with a current ratio of 5.56 and moderate debt levels, suggests it’s well-positioned to execute this acquisition.

Bernstein views the acquisition favorably, noting strong alignment with BioMarin’s existing business units and R&D capabilities, as well as call point overlap at a reasonable price. The firm suggests that similar future deals would likely build investor trust in BioMarin’s business development approach.

The price target increase reflects minor positive adjustments to estimates, extension of the forecast period to 2034, and reduction of the terminal growth rate from 1% to 0% given the longer forecast horizon. Bernstein’s valuation combines DCF analysis using a 9% WACC and 0% terminal growth rate, EV/Revenue multiple of 4.7x 2026 revenue, and a P/E ratio of 17x 2026 non-GAAP EPS. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips highlighting its attractive valuation relative to growth potential.

Bernstein has not yet incorporated Inozyme’s INZ-701 product into its financial model for BioMarin.

In other recent news, BioMarin Pharmaceutical Inc. has reported strong financial results, exceeding expectations in both earnings and revenue. The company achieved second-quarter revenue of $825 million, surpassing consensus estimates of $753 million. This performance was bolstered by a 20% year-over-year growth in Voxzogo and a 15% increase in enzyme revenues. Following these results, BioMarin raised its earnings per share guidance for the year, reflecting a disciplined operational approach under CEO Alexander Hardy.

Several analyst firms have responded positively to BioMarin’s performance. Cantor Fitzgerald reiterated an Overweight rating with a $90 price target, noting the company’s success across its product portfolio. Stifel maintained a Buy rating and a $91 price target, highlighting the company’s operational improvements. UBS raised its price target to $114, maintaining a Buy rating and citing promising data from BioMarin’s ’333 product. Bernstein also reiterated an Outperform rating with a $95 price target, acknowledging the company’s significant beat on consensus estimates. Lastly, TD Cowen maintained its Buy rating with a $120 price target, underscoring the strong quarterly results.

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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