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On Thursday, Piper Sandler analyst Christopher Raymond (NSE:RYMD) increased the price target for BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN) shares to $126 from the previous target of $122, while keeping an Overweight rating on the stock. Currently trading at $65.61, with a PEG ratio of 0.33, InvestingPro analysis suggests the stock is undervalued relative to its growth potential. The adjustment comes in the wake of BioMarin’s impressive financial performance for the fourth quarter of 2024 and its forward-looking guidance for 2025, which suggests a significant potential for earnings to surpass the current consensus of $3.42 per share.
BioMarin recently reported a top and bottom-line beat for the fourth quarter of 2024, surpassing market expectations with revenue growth of 17.97% and an impressive gross margin of 79.67%. The company’s guidance for the fiscal year 2025 indicates a promising trajectory, with the potential to exceed analysts’ predictions. This positive outlook is supported by the continued robust growth of Voxzogo, BioMarin’s innovative treatment, and the strong performance of its legacy enzyme replacement therapy (ERT) and Palynziq products. InvestingPro data reveals strong financial health metrics, with a current ratio of 5.33 indicating excellent liquidity.
The company’s revenue guidance for the fiscal year 2027 forecasts revenues exceeding $4 billion, bolstering confidence in BioMarin’s financial targets. Raymond highlighted the company’s consistent operational execution and the anticipated updates from its pipeline, particularly from BMN351 and BMN333, as factors reinforcing the positive assessment.
Despite the current undervaluation of BioMarin shares, largely attributed to perceived competitive threats, Raymond remains optimistic. He believes these concerns are overstated and expects the market to gradually recognize the company’s value as it continues to deliver on its strategic plans. With an upward revision of revenue estimates, the new price target of $126 reflects a confident outlook on BioMarin’s growth prospects and its ability to meet or exceed its long-term financial goals.
In other recent news, BioMarin Pharmaceutical Inc. reported impressive fourth-quarter results, exceeding market expectations. The company posted adjusted earnings per share of $0.92, significantly above the analyst consensus of $0.55, while revenue reached $747 million, surpassing estimates of $711.42 million and marking a 16% year-over-year increase. This strong performance was largely driven by robust demand for its rare disease treatment, Voxzogo, which saw a 42% year-over-year sales increase to $208 million in the fourth quarter. BioMarin’s optimistic outlook for 2025 includes a full-year revenue forecast between $3.1 billion and $3.2 billion, with adjusted earnings per share projected to be $4.20 to $4.40, surpassing analysts’ expectations of $4.16.
Stifel analysts responded to these results by raising BioMarin’s stock target to $91, maintaining a Buy rating. They noted the company’s strong financial performance and future potential, particularly with Voxzogo’s projected revenue growth. BioMarin’s pipeline development is also progressing, with anticipated data for Duchenne muscular dystrophy treatments in the second half of 2025. Despite some investor concerns about competition, Stifel analysts believe the market may have overestimated these threats. BioMarin remains focused on advancing its pipeline candidates, including potential treatments for multiple skeletal conditions.
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