Halozyme stock price target raised to $56 by Goldman Sachs on IRA impact analysis

Published 12/08/2025, 12:06
Halozyme stock price target raised to $56 by Goldman Sachs on IRA impact analysis

Investing.com - Goldman Sachs raised its price target on Halozyme Therapeutics (NASDAQ:HALO) to $56.00 from $55.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company maintains excellent financial health with a perfect Piotroski Score of 9 and trades at a P/E ratio of 14.28.

The adjustment follows Goldman’s assessment of potential impacts from the upcoming final Centers for Medicare & Medicaid Services (CMS) guidance on Inflation Reduction Act implementation for Part B drugs, which has been a source of investor uncertainty.

Goldman’s analysis suggests approximately 4% downside across Halozyme’s implicated partner products, noting that HALO shares had previously dropped 30% after the May draft guidance release before recovering 28% since then.

The recovery reflected higher near-term guidance, $300 million in share repurchases, and growing investor comfort with the IRA implementation outlook, according to the firm’s research.

Goldman identified additional challenges to Halozyme’s business sustainability, including emerging competition amid the Enhanze patent cliff, litigation uncertainty around next-generation MDASE technology, and concerns about revenue augmentation through business development. Despite these challenges, InvestingPro analysis shows robust revenue growth of 35% and strong cash flows sufficient to cover interest payments. Get access to 12+ additional ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Halozyme Therapeutics reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company exceeded earnings per share (EPS) expectations with an actual EPS of $1.54, surpassing the forecasted $1.24 by 24.19%. However, revenue fell short of expectations, coming in at $206 million compared to the anticipated $286.01 million, a shortfall of 27.97%. Following these results, Citizens JMP raised its price target for Halozyme to $91.00 from $78.00, maintaining a Market Outperform rating. Additionally, the company updated its guidance for 2025, increasing both top-line and bottom-line projections. In another development, Morgan Stanley (NYSE:MS) upgraded Halozyme’s stock from Equalweight to Overweight, setting a new price target of $75.00. This upgrade was influenced by the passage of the One Big Beautiful Bill, including the ORPHAN Cures Act, which Morgan Stanley believes offers a positive outlook for the company. These recent developments highlight a dynamic period for Halozyme Therapeutics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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