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Investing.com - Goldman Sachs has resumed coverage of TG Therapeutics (NASDAQ:TGTX) with a Neutral rating and a $37.00 price target. The $5.5 billion market cap company has demonstrated strong performance, with an impressive 85% return over the past year.
The investment bank notes that TG Therapeutics’ multiple sclerosis drug Briumvi has experienced a successful commercial launch to date and expects the product to continue gaining market share within the multiple sclerosis treatment space. According to InvestingPro data, the company maintains impressive gross profit margins of 87.4% and has achieved 33.5% revenue growth in the last twelve months.
Goldman Sachs highlights that Briumvi’s commercial success, coupled with its price discount compared to competitor drug Ocrevus, should provide market protection even if Ocrevus pricing faces negotiation under IRA policies.
The firm points out TG Therapeutics’ track record of conservative guidance, with the company beating expectations in all quarters where it provided guidance, achieving an average outperformance of 10%.
Goldman Sachs anticipates continued strong commercial execution from TG Therapeutics, stating that its Neutral rating primarily reflects current valuation considerations rather than concerns about the company’s performance. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value, with analysts maintaining a consensus "Buy" recommendation.
In other recent news, TG Therapeutics announced its first-quarter 2025 earnings, reporting a significant miss on earnings per share (EPS) with a result of $0.03 against the forecasted $0.16. However, the company’s revenue surpassed expectations, reaching $119.7 million compared to the estimated $117.13 million, marking a 137% increase year-over-year. The company has raised its full-year 2025 U.S. net revenue guidance to $560 million. In other developments, shareholders at TG Therapeutics approved several key proposals during the 2025 Annual Meeting, including the election of directors and an amendment to increase the number of authorized shares under the company’s Incentive Plan.
Additionally, TG Therapeutics presented new data on its multiple sclerosis drug, BRIUMVI, at the Consortium of Multiple Sclerosis Centers meeting, focusing on long-term treatment safety and tolerability. The drug is being studied in various trials, including the ULTIMATE I & II Phase 3 trials. Jefferies analyst Roger Song maintained a Buy rating on TG Therapeutics with a price target of $46.00, citing the company’s solid financial position with $276.2 million in cash and equivalents as of March 31, 2025. The company has indicated confidence in achieving profitability due to continued strong revenue growth.
TG Therapeutics also discussed its financial strategy, aiming to maintain non-GAAP operating expenses at approximately $300 million for the year, excluding the cost of goods sold. The company remains focused on supporting patients with its drug BRIUMVI and has emphasized the importance of monitoring for potential infusion reactions and infections. These recent developments reflect TG Therapeutics’ ongoing efforts to advance its financial and operational goals while navigating the competitive landscape of the pharmaceutical industry.
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