BioMarin stock rating upgraded to Outperform by Oppenheimer

Published 24/02/2025, 14:02
BioMarin stock rating upgraded to Outperform by Oppenheimer

On Monday, Oppenheimer analysts raised their outlook on BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN) stock, upgrading it from Perform to Outperform and setting a price target of $98.00. The upgrade follows BioMarin’s robust fourth quarter of 2024 performance, where the company reported total revenues of $747 million, surpassing the consensus estimate of $712 million. The analysts noted that the company’s financial guidance for 2025 suggests a stronger performance than what Wall Street anticipated. According to InvestingPro data, six analysts have recently revised their earnings estimates upward, with the company achieving impressive revenue growth of 18% over the last twelve months.

The firm’s analysts expressed increased confidence in BioMarin’s long-term financial prospects, citing the new management team’s efforts to enhance operational efficiency, cut costs, and strategically invest in research and development. According to Oppenheimer, the stock currently does not fully reflect the value of the company’s core enzyme business and the potential of Voxzogo, its drug for achondroplasia, despite its application to other short-stature conditions, forthcoming pipeline updates, and the possibility of expanding the development portfolio, which is actively being pursued. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 5.33 and operates with moderate debt levels, supporting its growth initiatives.

BioMarin’s recent performance and future outlook appear to be attracting positive attention from investors. The analysts believe that as BioMarin accelerates its path to profitability and positions itself for revenue growth in both the near and long term, investor interest is likely to grow. This sentiment is bolstered by the company’s transformation under its rejuvenated leadership. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of BioMarin’s financial health and growth prospects.

The pharmaceutical company’s focus on rare diseases has been a cornerstone of its strategy, and with the latest financial results and guidance, BioMarin is poised to continue building on its market position. The upgrade to an Outperform rating by Oppenheimer reflects the firm’s assessment that BioMarin’s stock will likely perform better than the overall market in the near future. With a strong gross profit margin of 53.5% and projected revenue growth of 10% for FY2025, the company demonstrates solid fundamentals supporting its growth trajectory.

In other recent news, BioMarin Pharmaceutical Inc. reported a strong fourth quarter, exceeding market expectations with adjusted earnings per share of $0.92, compared to the consensus of $0.55. The company achieved a revenue of $747 million, surpassing estimates of $711.42 million, marking a 16% year-over-year increase. BioMarin’s 2025 guidance forecasts revenue between $3.1 billion and $3.2 billion, with earnings per share projected at $4.20-$4.40, both above analyst expectations. Additionally, Piper Sandler raised its price target to $126, citing BioMarin’s impressive financial performance and promising outlook. Stifel also increased its target to $91, highlighting strong revenue growth from BioMarin’s product Voxzogo, which showed a notable 50% year-over-year increase. BMO Capital Markets maintained a $115 target, pointing to BioMarin’s solid financials and potential catalysts in the upcoming year. Cantor Fitzgerald reiterated an Overweight rating with a $90 target, emphasizing BioMarin’s projected revenue growth and expanding operating margins. BioMarin’s developments indicate a positive trajectory, supported by strong product performance and promising pipeline advancements.

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