Ligand Pharma stock price target raised to $167 by Oppenheimer on strong royalty growth

Published 07/08/2025, 20:24
Ligand Pharma stock price target raised to $167 by Oppenheimer on strong royalty growth

Investing.com - Oppenheimer raised its price target on Ligand Pharma (NASDAQ:LGND) to $167.00 from $162.00 on Thursday, while maintaining an Outperform rating following the company’s second-quarter earnings report. The stock, which has delivered an impressive 32.9% return year-to-date, is currently trading near its 52-week high, reflecting strong market confidence.

Ligand reported total revenue of $47.6 million for the second quarter of 2025, exceeding both Oppenheimer’s estimate of $44.2 million and the consensus estimate of $43.9 million. Royalty revenue reached $36.4 million, representing 57% year-over-year growth. According to InvestingPro data, the company’s overall revenue growth stands at 53.4% for the last twelve months, with a robust financial health score rated as "GREAT."

The company has increased its full-year 2025 revenue guidance from $175-200 million to $200-225 million, citing increased contract revenues and strong royalty growth. Filspari and Ohtuvayre remain Ligand’s lead growth assets, with Oppenheimer expecting revenue expansion for both products. With a current ratio of 5.27 and moderate debt levels, InvestingPro analysis suggests the company is well-positioned to execute its growth strategy. For deeper insights into Ligand’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Ligand recently made an investment in Orchestra Biomed, which included $20 million upfront, a $15 million tranche, and $5 million in equity. In return, Ligand will receive high-teens royalties on the first $100 million in annual sales and single-digit royalties beyond that threshold.

Oppenheimer now includes Zelsuvmi contributions in its model, projecting approximately $25 million in annual royalties from this product by 2030, which factored into the price target increase.

In other recent news, Ligand Pharmaceuticals reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.60, compared to the forecasted $1.43, marking an 11.89% surprise. Revenue also exceeded predictions, reaching $47.63 million against the expected $43.74 million, an 8.89% surprise. These results highlight a positive performance for Ligand Pharmaceuticals in the recent quarter. Following the announcement, the company’s stock showed an increase, reflecting investor confidence. Analysts had anticipated different figures, but Ligand’s performance exceeded those projections. This development is part of recent company updates that investors are closely watching.

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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