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On Wednesday, BMO Capital Markets maintained their Outperform rating on Legend Biotech Corp (NASDAQ:LEGN) shares, with a steady price target of $90.00. The firm’s analysts highlighted the positive trend in investor sentiment year-to-date, with Legend Biotech’s stock outperforming the broader biotech index, gaining 14.3% compared to a 4.5% decline in the XBI. According to InvestingPro data, analyst targets range from $53 to $95, with the stock currently trading at $37.39, suggesting significant potential upside based on consensus estimates.
The analysts expressed confidence in Legend Biotech’s growth prospects, particularly pointing to the expected significant revenue increase in 2025. This optimism is based on the anticipated capacity expansion from facilities such as NVS, Raritan, and Techlane, which could potentially double the company’s yearly revenue. InvestingPro data supports this growth trajectory, showing impressive revenue growth of 123% over the last twelve months and analysts forecasting 116% growth for the current fiscal year. The company maintains a strong financial position with a current ratio of 4.98, indicating robust liquidity to support its expansion plans.
Legend Biotech’s Carvykti treatment is at the center of this growth forecast. BMO Capital Markets analysts believe that the generation of real-world evidence ( RWE (LON:0HA0)) will address concerns regarding Carvykti’s delayed neurotoxicity effects, thus further supporting the stock’s performance throughout the year.
Moreover, the analysts suggest that any potential neurotoxicity events associated with competitor therapies, such as Anito-cel, could have a favorable impact on Legend Biotech’s standing in the market. The firm reaffirmed their positive stance, with the expectation that these factors will continue to drive Legend Biotech’s performance and justify the Outperform rating.
In other recent news, Legend Biotech Corporation reported fourth quarter 2024 financial results that surpassed analyst expectations. The company posted adjusted earnings per share of -$0.16, which was better than the anticipated -$0.25. Revenue for the quarter reached $186.52 million, exceeding projections of $173.99 million, driven by strong sales of its multiple myeloma treatment, CARVYKTI. CARVYKTI’s net trade sales amounted to approximately $334 million in the fourth quarter and $963 million for the full year. The company also reported having treated over 5,000 patients with the therapy to date.
Legend Biotech’s financial position appears robust, with cash and cash equivalents totaling $1.1 billion as of December 31, 2024. Piper Sandler reiterated its Overweight rating with a $78 price target, citing confidence in Legend Biotech’s strategic developments and growth projections. Additionally, H.C. Wainwright raised its 12-month price target for the company from $73.00 to $75.00, maintaining a Buy rating. This revision was influenced by Legend Biotech’s expectations to meet the 2025 consensus estimates for CARVYKTI sales. The company has also initiated commercial production at a Novartis (SIX:NOVN) facility and gained reimbursement approval in Spain for CARVYKTI in earlier treatment lines.
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