U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
On Wednesday, H.C. Wainwright adjusted its outlook on Legend Biotech Corp . (NASDAQ:LEGN), raising the 12-month price target from $73.00 to $75.00. The firm maintained its Buy rating on the company’s shares. According to InvestingPro data, the stock is currently trading below its Fair Value, with analyst targets ranging from $53 to $95. The revision follows Legend Biotech’s expectations to meet the 2025 consensus estimates for CARVYKTI sales, which analysts recently set at $1.9 billion from a pool of 25 estimates.
Legend Biotech anticipates a modest quarter-over-quarter growth in the first quarter of 2025, with a significant increase expected in the second quarter. The company projects a stronger performance in the second half of the year compared to the first, with sequential growth anticipated in each respective quarter of the latter half.
The company has also reiterated its production capacity guidance, aiming to reach the ability to produce 10,000 doses by the end of 2025. This target is set to position Legend Biotech to meet and potentially exceed the demand projected at that time. The company maintains a strong financial position with a current ratio of 4.98, indicating robust liquidity to support its expansion plans.
The updated penetration rates have led H.C. Wainwright to increase their price target, as they align their forecasts with the consensus for 2025. The firm’s analyst, Mitchell S. Kapoor, expressed confidence in Legend Biotech’s growth trajectory and operational goals, leading to the reiterated Buy rating and adjusted price target. With a market capitalization of $6.8 billion and an overall "GOOD" financial health score from InvestingPro, the company appears well-positioned to execute its growth strategy.
In other recent news, Legend Biotech Corporation reported fourth quarter 2024 earnings that surpassed analyst expectations, primarily due to robust sales of its multiple myeloma treatment, CARVYKTI. The company posted adjusted earnings per share of -$0.16, beating the consensus estimate of -$0.25. Revenue reached $186.52 million, exceeding analyst projections of $173.99 million. CARVYKTI’s net trade sales were approximately $334 million in Q4 and $963 million for the full year 2024. Legend Biotech also reported cash and cash equivalents of $1.1 billion as of December 31, 2024, which it believes will sustain operations into the second quarter of 2026. The company announced several developments, including the start of commercial production at a Novartis (SIX:NOVN) facility and obtaining reimbursement approval in Spain for CARVYKTI in earlier treatment lines. These recent developments highlight the company’s ongoing efforts to expand its market presence and financial stability.
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