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On Wednesday, Cantor Fitzgerald reiterated a Neutral rating on Rigel Pharmaceuticals (NASDAQ:RIGL) with a steady price target of $20.00. The stock, currently trading at $22.08, has shown remarkable momentum with a 64.65% gain over the past six months. According to InvestingPro data, the company maintains profitability with a healthy 76.12% gross margin. The firm’s analyst provided an update to the Rigel Pharmaceuticals financial model for the period ending December 31, 2024, which included revised revenue and operating expense estimates in line with the company’s guidance.
The valuation approach used by Cantor Fitzgerald included a 12% discount rate for the net present value (NPV) of Rigel’s free cash flow, which is estimated to be approximately $256 million. Additionally, the firm included a $100 million placeholder for Rigel’s early-stage pipeline, contributing to a total NPV of around $356 million. InvestingPro analysis shows the company maintains a "GREAT" overall financial health score of 3.13, with particularly strong momentum and growth metrics.
The firm’s analyst further explained that when considering Rigel’s cash position, which is approximately $5 per share, the combined value supports the 12-month price target of $20 per share. The financial model also accounts for the projected shares outstanding and cash for the fourth quarter of 2025.
The reiteration of the Neutral rating and the $20 price target underscores the firm’s current view of Rigel Pharmaceuticals’ stock value based on the updated financial model and the company’s provided guidance. The analysis by Cantor Fitzgerald reflects a comprehensive assessment of Rigel’s financial health and future prospects as of the stated period. For deeper insights into RIGL’s valuation and growth potential, including 8 additional ProTips and comprehensive financial metrics, check out the full research report available on InvestingPro.
In other recent news, Rigel Pharmaceuticals reported robust financial results for the fourth quarter and full year of 2024, surpassing both firm and consensus estimates. The company achieved earnings per share of $0.80 for Q4 and $0.99 for the year, with total revenue reaching $145 million, marking a 39% increase from the previous year. Rigel’s net product sales for Q4 grew by 58% year-over-year to $46.5 million, driven by strong sales of Tavalisse, Rezlidhia, and Gavreto. The company also recorded its first full-year net income of $17.5 million and increased its cash reserves by over $20 million.
H.C. Wainwright maintained a Buy rating on Rigel Pharmaceuticals, setting a price target of $57, reflecting confidence in the company’s financial performance and strategic initiatives. Rigel is actively expanding its commercial portfolio, aiming for 30% year-over-year growth in net product sales in 2025, with projected total revenue between $200 million and $210 million. The company is also progressing with its clinical trials, including the R289 Phase 1b study for lower-risk myeloid dysplastic syndrome and a Phase 2 study for recurrent glioma. These developments underscore Rigel’s commitment to growth and innovation in the hematology and oncology sectors.
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