Jefferies cuts Rigel stock target to $20.45, maintains hold

Published 07/05/2025, 11:00
Jefferies cuts Rigel stock target to $20.45, maintains hold

On Wednesday, Jefferies analyst Eun Yang adjusted the price target for Rigel Pharmaceuticals (NASDAQ:RIGL), currently trading at $18.26, to $20.45, down from the previous target of $23.00, while continuing to recommend a Hold rating on the stock. Yang noted that Rigel’s sales for the first quarter met expectations, with steady demand for its three commercial drugs among both new and existing patients. According to InvestingPro data, the company has demonstrated impressive revenue growth of nearly 55% over the last twelve months.

The company confirmed its projected net product revenue for 2025, anticipating it to be between $185 million and $192 million. The analyst highlighted the positive performance of Gavreto, which saw an 18% increase in net sales compared to the fourth quarter of 2024, attributing this growth to patient demand. The company maintains a healthy gross profit margin of 76.6%, reflecting strong operational efficiency.

Rigel is progressing with its Phase Ib study of R289 for lower-risk myelodysplastic syndromes (LR-MDS), with a data update expected to be presented at the American Society of Hematology (ASH) meeting in 2025. The company has also provided guidance indicating it expects to achieve net income positivity in 2025.

The financial position of Rigel was also mentioned, with the company reporting a cash reserve of $77.1 million. This reserve is considered to offer some flexibility for potential business development opportunities. InvestingPro analysis shows the company maintains a strong current ratio of 2.13, indicating solid short-term liquidity. With a market capitalization of $326 million and current trading levels near Fair Value, investors seeking deeper insights can access comprehensive financial analysis and additional ProTips through the detailed Pro Research Report available on InvestingPro.

In other recent news, Rigel Pharmaceuticals reported strong financial results for the first quarter of 2025, with total revenue reaching $53.3 million, a 68% increase compared to the same period last year. The company achieved a net income of $11.4 million, reversing a net loss of $8.2 million in Q1 2024. Rigel’s revenue growth was significantly driven by the sales of TAVALISSE, which saw a 35% increase year-over-year. The company has set a revenue guidance of $200-210 million for the full year 2025 and expects to maintain positive net income throughout the year. Additionally, Rigel Pharmaceuticals announced it will not share future development costs with Lilly for the drug ogadusertib, which will result in recognizing approximately $40 million in collaboration revenue in the second quarter. The firm maintains its focus on expanding its commercial portfolio and advancing key development programs, such as R289 for lower-risk MDS and elutacitinib for glioma. Analyst firms like B. Riley Securities and H.C. Wainwright engaged with Rigel’s management during the earnings call, highlighting investor interest in the company’s strategic direction and financial health.

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