Bullish indicating open at $55-$60, IPO prices at $37
On Friday, RBC Capital Markets analyst Douglas Miehm increased the price target for Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) to $153 from the previous target of $143. This adjustment comes alongside a maintained Outperform rating for the company’s shares. According to InvestingPro data, analyst targets for LGND range from $125 to $160, with the stock currently trading at $116.30, suggesting potential upside. The company maintains a "GREAT" overall financial health score of 3.17 out of 5.
Ligand Pharma has recently reported a successful fourth quarter for 2024, with total revenue and other income reaching approximately $42.8 million. This figure surpassed the consensus estimate of $39.0 million by about 10% and exceeded RBC Capital’s own estimate ($37.4 million) by roughly 15%. The adjusted core earnings per share (EPS) for the quarter came in at $1.27, which was about 7% higher than both the consensus estimate of $1.19 and RBC Capital’s estimate of $1.18. InvestingPro analysis reveals impressive gross profit margins of 93.37% and strong liquidity, with current assets significantly exceeding short-term obligations at a ratio of 8.93.
The company’s management has confidently reaffirmed their guidance for 2025, projecting revenues between $180 million and $200 million, which would represent a year-over-year increase of 8-20%. Additionally, the adjusted core EPS is forecasted to be in the range of $6.00 to $6.25 per share, marking a 5-9% growth from the previous year. These projections reflect Ligand Pharma’s positive outlook and its ability to maintain financial growth and stability. The company’s solid financial position is further supported by InvestingPro data showing minimal debt and strong cash position, with several more key insights available in the comprehensive Pro Research Report.
Looking ahead, Ligand Pharma is expected to reach several significant milestones in 2025. These include the potential for strategic transactions and the planned mid-year launch of Zelsuvmi, which is anticipated to be a value-creating event for the company.
The revised price target of $153 by RBC Capital is based on updated consensus forecasts for the underlying drugs in Ligand Pharma’s portfolio. Additionally, the new target factors in the recent D-Fi royalty financing transaction, which is expected to contribute to the company’s financial strength and market performance.
In other recent news, Ligand Pharmaceuticals reported robust financial results for the fourth quarter of 2024, surpassing analyst expectations with an earnings per share (EPS) of $1.27, compared to the forecasted $1.18. The company also exceeded revenue projections, posting $42.81 million against the anticipated $39.03 million. For the full year, Ligand’s revenue increased by 27% to $167.1 million, driven by a 28% rise in royalty revenue. The company ended 2024 with $256 million in cash and investments, positioning it well for future growth. Ligand has set its 2025 revenue guidance between $180 million and $200 million, with an adjusted EPS forecast of $6 to $6.25. Analysts from various firms have noted the company’s strong performance, with some highlighting the potential of Ligand’s recent investment in Castle Creek’s cell and gene therapy. Ligand’s CEO, Todd Davis, emphasized the company’s focus on profitable growth through strategic partnerships and investments.
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