Gold is 2025’s best performer. UBS sees more upside
On Tuesday, Legend Biotech Corp . (NASDAQ:LEGN), currently trading at $31.07, received a reaffirmed Buy rating and a $62.00 price target from TD Cowen, maintaining a positive outlook on the company’s stock. The endorsement follows a steady increase in demand for Carvykti, Legend’s cancer treatment drug, particularly in earlier treatment lines. According to InvestingPro data, analyst targets range from $53.12 to $95, suggesting significant upside potential.
TD Cowen highlighted the robust sales ramp for Carvykti, noting that 60% of incoming orders are for second to fourth-line treatments. This success is reflected in Legend’s impressive 119.97% revenue growth over the last twelve months. The expansion of capacity is on track, with more sites set to provide commercial supply throughout 2025. Management at Legend Biotech has adjusted their growth expectations, now anticipating a stronger second half of 2025 rather than the previously expected second quarter.
The company’s guidance to achieve a combined capacity of over 10,000 annualized doses by the end of 2025 remains unchanged, ensuring Carvykti will not be supply-constrained. Furthermore, confidence is growing towards reaching a capacity of 20,000 doses in the fiscal year 2027. Carvykti’s market lead, successful launch in second-line treatments and beyond, and its differentiated efficacy, particularly in overall survival benefits, are key factors in this optimism.
Legend Biotech’s manufacturing success rate stands at 97%, with a turnaround time of 30 days. Over 50% of Carvykti’s use is in outpatient settings, which, coupled with a clear strategy to mitigate delayed neurotoxicity through ALC monitoring, positions the drug favorably for community adoption. Additional data expected in first-line treatments further bolsters confidence in Carvykti’s ongoing success.
The company’s financial outlook is also strong, with a $1.0 billion cash runway projected to lead into profitability in the fiscal year 2026. InvestingPro analysis shows the company maintains a healthy current ratio of 4.62 and holds more cash than debt on its balance sheet. The Carvykti joint venture is expected to reach profitability by the end of 2025. With these factors in mind and current trading levels near 52-week lows, TD Cowen reiterates its Buy rating for Legend Biotech stock. For a comprehensive analysis of Legend Biotech’s valuation and growth prospects, access the full Pro Research Report on InvestingPro.
In other recent news, Legend Biotech Corp. released its first-quarter financial results for 2025, reporting total revenues of approximately $195 million, which fell short of Raymond (NSE:RYMD) James’ estimate of $203 million. The company experienced a net loss of $101 million, with an adjusted net loss of $27 million. Despite this, Legend Biotech’s Carvykti sales showed a 10% quarter-over-quarter increase, with revenues reaching approximately $185.6 million, marking a significant 127% growth year-over-year. Truist Securities adjusted its price target for Legend Biotech to $71 from $88, maintaining a Buy rating, reflecting a more conservative outlook on Carvykti’s growth trajectory. Meanwhile, Raymond James reaffirmed its Outperform rating and an $86 price target, citing the competitive positioning of Carvykti against other CAR T therapies. The company anticipates achieving operational breakeven for Carvykti by the end of 2025 and expects overall profitability in 2026. Legend Biotech’s cash position remains strong, with approximately $1 billion in cash and equivalents, which is expected to sustain operations until profitability is achieved.
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