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Investing.com - RBC Capital has raised its price target on Galapagos NV (NASDAQ:GLPG) to $28.00 from $27.00 while maintaining a Sector Perform rating on the stock. According to InvestingPro data, the company currently trades at $31.43, with a market capitalization of $2.09 billion.
The price target adjustment follows Galapagos’s formal wind-down of its CAR-T program, which RBC Capital notes was not entirely surprising but requires a reassessment of the company’s valuation approach. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, though it’s quickly burning through cash reserves.
RBC Capital describes Galapagos as effectively a "cash shell with unknown BD outcomes" despite having a significant balance sheet and biopharma-experienced leadership team, with some constraints from its Gilead collaboration.
The new price target reflects RBC’s estimated cash balance for Galapagos at the end of 2026 after accounting for announced wind-down costs, calculated at $3.12 billion.
RBC Capital applied a 0.65 multiplier to this cash balance to account for the Gilead relationship, resulting in the $28 per share target price.
In other recent news, Galapagos NV announced that it would wind down its cell therapy business after unsuccessful attempts to sell the unit, leading to a unanimous decision by the company’s board. This strategic move, aimed at reducing operating expenses, was positively received by Leerink Partners, which upgraded Galapagos’ stock rating from Market Perform to Outperform and increased its price target to $40.00. However, the announcement also led to a 15% drop in the company’s stock value. Raymond James maintained its Market Perform rating on Galapagos following the release of the company’s second-quarter 2025 financial results. The company reported earnings per share of €(1.60), which fell significantly short of Raymond James’ estimate of €(0.22). The discrepancy was mainly attributed to costs related to severance, asset impairments, and early termination of collaboration agreements. These recent developments reflect Galapagos’ ongoing efforts to streamline operations and manage expenses.
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