Bullish indicating open at $55-$60, IPO prices at $37
Tuesday, H.C. Wainwright reaffirmed its Buy rating and $55.00 price target for TG Therapeutics (NASDAQ:TGTX), following the company’s financial results for the fourth quarter of 2024. The biopharmaceutical company, currently valued at $4.94 billion, reported a GAAP earnings per share (EPS) of $0.15, exceeding both the firm’s and the consensus estimate of $0.13. The non-GAAP EPS was even more robust at $0.22, surpassing the H.C. Wainwright’s projection of $0.20 and the consensus of $0.18. According to InvestingPro data, TGTX has achieved profitability over the last twelve months and maintains an impressive gross profit margin of 88.3%.
TG Therapeutics saw an increase in expenses year-over-year, with research and development (R&D) costs, excluding non-cash compensation, climbing to $20.7 million in the fourth quarter of 2024 from $14.6 million in the same quarter of the previous year. Similarly, selling, general and administrative (SG&A) expenses, also excluding non-cash compensation, rose to $30.2 million from $24.6 million.
The company’s total revenue for the fourth quarter reached $108.2 million, contributing to a full-year revenue of $329.0 million for 2024. Product revenue for the year amounted to $313.7 million, primarily from $310.0 million in net sales of Briumvi in the U.S., and included around $3.7 million from product sold to partner Neuraxpharm for the commercialization of Briumvi outside the U.S.
Looking forward, H.C. Wainwright estimates TG Therapeutics will generate total revenue of $539.9 million in 2025, with a GAAP EPS of $1.19 and a non-GAAP EPS of $1.39. The company has set a target operating expense of approximately $300 million for 2025, not accounting for non-cash compensation. TG Therapeutics ended 2024 with a cash position of around $311.0 million and, after accounting for investments in inventory and share repurchases, managed to generate cash flow from operations. The firm anticipates this trend will continue into 2025. The Buy rating and $55 price target have been reiterated based on these financials and forecasts. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, with a P/E ratio of 200.6x. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of TGTX’s valuation metrics, growth prospects, and 12 additional ProTips.
In other recent news, TG Therapeutics reported strong financial results for the fourth quarter of 2024, surpassing analyst expectations. The company announced an earnings per share (EPS) of $0.15, significantly higher than the projected $0.08, and revenue of $108.19 million, exceeding the anticipated $97.66 million. This performance reflects a notable year-over-year revenue growth of approximately 250%. The positive earnings call highlighted the robust adoption of Briumvi, their anti-CD20 drug for multiple sclerosis, with U.S. net product revenue reaching $103.6 million in the fourth quarter and a full-year total of $310 million.
Cantor Fitzgerald reiterated an Overweight rating for TG Therapeutics, suggesting potential upside for Briumvi’s 2025 revenue guidance, which currently stands at $525 million in the U.S. market. The company has also expanded Briumvi’s patent protection through 2042 and launched the drug in Europe via a partnership with Neuraxpharm. TG Therapeutics has a strong financial position with $311 million in cash and investment securities as of the end of 2024, indicating it is well-capitalized to pursue its business plans.
The company’s strategic initiatives include launching new clinical trials and entering a global license agreement for a CAR T therapy program. Analysts from Cantor Fitzgerald are optimistic about TG Therapeutics’ prospects, citing the company as a "highly de-risked commercial story" and anticipating another beat and raise scenario for Briumvi’s 2025 revenue. These developments suggest a promising financial outlook for TG Therapeutics in the upcoming years.
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