U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
On Tuesday, Raymond (NSE:RYMD) James reaffirmed its Outperform rating and $86.00 price target on Legend Biotech Corp . (NASDAQ:LEGN), following the company’s release of its first-quarter financial results for 2025. According to InvestingPro analysis, LEGN is currently trading near its 52-week low and appears undervalued based on its Fair Value assessment. Legend Biotech reported total revenues of approximately $195 million, falling short of Raymond James’ estimate of $203 million. The company’s earnings per share (EPS) came in at a loss of $0.27, which was more than the anticipated loss of $0.19 per share.
Legend Biotech’s Carvykti, a treatment for multiple myeloma, generated revenues of approximately $185.6 million in the quarter, marking a 10% quarter-over-quarter increase and a significant 127% growth year-over-year. The company experienced a particularly strong performance outside of the United States, with the first Belgian facility, Obelisc, beginning commercial production.
As of the end of the first quarter of 2025, Legend Biotech had around $1.0 billion in cash and equivalents. InvestingPro data shows the company maintains a strong financial health score of 2.7/5, with more cash than debt and liquid assets exceeding short-term obligations. The firm’s financial position is expected to sustain its operations until it reaches profitability, which is projected by the end of 2025 for Carvykti and during 2026 for the company as a whole.
Raymond James’ positive outlook is based on the competitive positioning of Carvykti against other CAR T therapies in the treatment of multiple myeloma. The firm also cites the therapy’s strong market presence in the second-line setting and the potential expansion into frontline therapy as reasons for maintaining the Outperform rating and the $86 price target. This aligns with the broader analyst consensus, as tracked by InvestingPro, which shows strong buy recommendations with price targets ranging from $53 to $95.
In other recent news, Legend Biotech Corp reported strong financial results for Q1 2025, primarily driven by the impressive sales growth of its product, CARVICTI. The company recorded total revenues of $195 million, exceeding the forecasted $192.54 million, with CARVICTI sales reaching $369 million, marking a 135% year-over-year increase. Despite a net loss of $101 million, the adjusted net loss was $27 million. The company aims to achieve operational breakeven for CARVICTI by the end of 2025. Additionally, Legend Biotech plans to expand its market presence in Europe and the U.S. and is developing an in vivo CAR T platform. Analysts from various firms have shown interest in the company’s strategic moves and future potential, with some discussions focusing on community adoption and manufacturing expansion. The company maintains a strong cash position of $1 billion, which supports its ongoing investments and expansion plans.
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