Legend Biotech stock price target lowered to $54 at UBS on growth concerns

Published 03/07/2025, 15:14
Legend Biotech stock price target lowered to $54 at UBS on growth concerns

Investing.com - UBS has lowered its price target on Legend Biotech Corp . (NASDAQ:LEGN) to $54.00 from $60.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company has demonstrated strong revenue growth of 112% over the last twelve months, despite currently trading below its Fair Value.

The price target reduction comes as UBS analyst Ashwani Verma notes that while upside potential remains for Legend Biotech shares, it depends on modest growth in the second quarter followed by acceleration in the second half of 2025.

UBS acknowledges that Legend Biotech stock, which has gained just 4% year-to-date, may continue to trade in a range-bound pattern unless there is a "material step-up" in the revenue profile of Carvykti, the company’s cell therapy product.

Legend Biotech and its partner Johnson & Johnson have consistently reiterated their goal of reaching 10,000 annualized doses of Carvykti by the end of 2025, according to the research note.

UBS believes a better setup for the stock would involve management clearly articulating fourth-quarter 2025 or 2026 revenue goals, as the translation from doses to revenue remains unclear due to factors including clinical doses, specification rates, and slot utilization.

In other recent news, Legend Biotech Corporation has been under the spotlight following several key developments. The company reported significant findings from the CARTITUDE-1 study, demonstrating that one-third of patients with relapsed/refractory multiple myeloma remained progression-free for at least five years after a single infusion of CARVYKTI. This data was presented at the American Society of Clinical Oncology Annual Meeting, highlighting the therapy’s potential long-term benefits. Additionally, the U.S. Food and Drug Administration approved a supplemental Biologics License Application for CARVYKTI, removing certain monitoring requirements and easing restrictions, which could accelerate its adoption in the United States.

Analyst firms have weighed in on Legend Biotech’s prospects, with H.C. Wainwright maintaining a Buy rating and RBC Capital reiterating an Outperform rating, citing the company’s undervaluation and potential growth opportunities. BMO Capital also reaffirmed an Outperform rating, emphasizing CARVYKTI’s strong market positioning and unique administration benefits. Despite some competitive pressures, analysts remain optimistic about Legend Biotech’s strategic positioning and potential revenue growth. These developments underscore the company’s ongoing commitment to advancing cell therapy treatments and its collaboration with Johnson & Johnson in commercializing CARVYKTI.

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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