Morgan Stanley initiates coverage on Telix Pharmaceuticals stock with Overweight rating

Published 25/08/2025, 06:20
Morgan Stanley initiates coverage on Telix Pharmaceuticals stock with Overweight rating

Investing.com - Morgan Stanley (NYSE:MS) initiated coverage on Telix Pharmaceuticals Ltd (ASX:TLX) with an Overweight rating and a price target of AUD25.60.

The firm forecasts Illuccix/Gozellix revenue of US$598 million for 2025, increasing to US$690 million in 2026, citing potential improved prostate cancer imaging reimbursement through CMS transitional pass-through pricing for Gozellix starting October 1, 2025.

Morgan Stanley sees growth opportunities through new formulations and expanded indications that could increase Telix’s addressable market over the medium to longer term.

The investment bank expects modest near-term earnings following Telix’s 1H25 results, with more significant margin improvements and free cash flow generation anticipated from fiscal years 2029-2030.

Morgan Stanley’s base case valuation of AUD26.30 per share includes AUD14.30 per share from Precision Medicine and AUD12.00 per share from Therapeutics, capturing revenue forecasts from approved products and risk-weighted contributions from Phase 3 candidates.

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