BMO maintains $115 target on BioMarin stock, cites growth potential

Published 20/02/2025, 14:52
BMO maintains $115 target on BioMarin stock, cites growth potential

On Thursday, BMO Capital Markets maintained their Outperform rating and $115.00 price target for BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN), highlighting the company’s continued growth and potential upside in 2025. The firm’s analysts pointed to BioMarin’s strong quarterly performance, which exceeded consensus estimates for both top and bottom lines, with impressive revenue growth of 18% year-over-year and a robust gross profit margin of 80%. The company’s guidance suggests a trajectory to surpass $4 billion in revenues by 2027, building on its current annual revenue of $2.85 billion.

BioMarin’s product Voxzogo is identified as a primary growth driver, while contributions from Baze biz are also significant, as evidenced by a 17% year-over-year growth of Palynziq. Despite past disappointments and a current lack of major catalysts, which have led to investor skepticism, BMO Capital analysts believe that BioMarin is worth reconsidering due to its solid financials and anticipated catalysts in the upcoming year. According to InvestingPro analysis, the company maintains a "GREAT" financial health score and appears undervalued based on their proprietary Fair Value model.

The analysts anticipate that several events in 2025 could positively impact BioMarin’s narrative, including data from BMN333 and Infigratinib trials, as well as potential business development announcements. These factors are expected to create a favorable risk/reward scenario for the company. InvestingPro subscribers can access 8 additional key insights about BioMarin, including detailed analysis of its growth prospects and financial stability metrics, available in the comprehensive Pro Research Report.

BMO Capital’s reiteration of the Outperform rating is based on the belief that the market has not fully appreciated BioMarin’s potential. The analysts argue that the company’s strong performance, demonstrated by its attractive PEG ratio of 0.33 and expected data releases in 2025, could lead to a reevaluation of the stock by investors.

In other recent news, BioMarin Pharmaceutical Inc. reported robust financial results for the fourth quarter of 2024, exceeding market expectations. The company posted adjusted earnings per share of $0.92, significantly above the analyst consensus of $0.55, with revenue reaching $747 million, surpassing the estimated $711.42 million. This strong performance was primarily driven by a 42% year-over-year surge in sales of VOXZOGO, a treatment for achondroplasia. Looking ahead, BioMarin provided an optimistic outlook for 2025, forecasting full-year revenue between $3.1 billion and $3.2 billion and adjusted earnings per share between $4.20 and $4.40, both above analysts’ expectations.

Piper Sandler analyst Christopher Raymond (NSE:RYMD) raised BioMarin’s stock target to $126, maintaining an Overweight rating due to the company’s impressive financial performance and promising guidance for 2025. Raymond highlighted BioMarin’s consistent operational execution and the potential for its earnings to exceed current consensus estimates. Similarly, Stifel analysts increased their price target for BioMarin to $91, expressing confidence in the company’s strong earnings and revenue growth. They noted that BioMarin’s revenue guidance for 2025, especially for VOXZOGO, might be conservative, given the product’s notable 50% year-over-year revenue growth.

Despite concerns about competitive threats, both Piper Sandler and Stifel analysts remain optimistic about BioMarin’s growth prospects. The company’s pipeline developments, including potential treatments for Duchenne muscular dystrophy and other conditions, are anticipated to contribute positively to its future performance. BioMarin’s recent achievements and forward-looking guidance have set a strong foundation for its continued success in the biotechnology sector.

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