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On Friday, RBC Capital Markets retained a positive stance on Legend Biotech Corp . (NASDAQ:LEGN) shares, as analyst Leonid Timashev confirmed an Outperform rating with a $78.00 price target. Trading at $27.61, the stock has declined 14.9% year-to-date, with analyst targets ranging from $53 to $95. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with multiple analysts maintaining a strong buy consensus. Timashev’s analysis suggests that Legend Biotech’s current valuation presents a compelling buying opportunity, given the company’s resilience to various industry challenges.
Legend Biotech, which has seen its shares affected by multiple factors such as the Most Favored Nation (MFN) model, tariffs, regulatory changes, and competitor data, is believed to be fundamentally undervalued, according to Timashev. InvestingPro analysis reveals strong financial health indicators, including a current ratio of 5.2 and more cash than debt on its balance sheet. These metrics, along with 10+ additional ProTips available to subscribers, suggest robust fundamental strength despite market pressures. The analyst conducted a rigorous evaluation of the company’s financial model under several adverse scenarios to ascertain the intrinsic value of the stock. The conclusion drawn is that the shares are currently at or near their fundamental floor price.
Timashev’s commentary highlighted the potential for significant growth for Legend Biotech if the company continues to effectively manage its core operations. The company has demonstrated impressive revenue growth of 112.46% over the last twelve months, with a market capitalization of $5.09 billion. Additional gains could be realized if the broader macroeconomic pressures subside or if competitors encounter difficulties. The analyst’s optimism is further bolstered by the projection of nearly $10 billion in future revenue opportunities for Legend Biotech, set against a current enterprise value of less than $5 billion.
The RBC Capital Markets analyst remains confident in Legend Biotech’s prospects, advocating for continued investment in the company’s shares. This confidence is rooted in the belief that the company is well-positioned to capitalize on its revenue potential and navigate through the current market challenges that have affected its stock price. Timashev’s analysis underscores the view that Legend Biotech’s stock offers a valuable proposition for investors at its current level. For deeper insights into Legend Biotech’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which includes detailed analysis of the company’s financial health, valuation metrics, and growth potential.
In other recent news, Legend Biotech Corp. has reported substantial financial results for the first quarter of 2025, driven by significant sales growth of its flagship product, Carvykti. The company posted total revenues of $195 million, marking a 137% year-over-year increase. Despite a net loss of $101 million, the adjusted net loss was $27 million, with a gross margin on net product sales improving to 63%. Analysts from Truist Securities adjusted their price target for Legend Biotech to $71, maintaining a Buy rating, following a 10% quarter-over-quarter increase in Carvykti sales. Raymond (NSE:RYMD) James also maintained its Outperform rating with an $86 price target, citing strong market presence and potential expansion into frontline therapy.
Legend Biotech’s Carvykti sales have been robust, with a 135% year-over-year increase, reaching $369 million. The company aims for operational breakeven for Carvykti by the end of 2025 and expects profitability in 2026. TD Cowen reaffirmed a Buy rating with a $62 target, highlighting Carvykti’s successful launch in second-line treatments and beyond. The company’s manufacturing success rate stands at 97%, with a turnaround time of 30 days, and over half of Carvykti’s use is in outpatient settings. Legend Biotech remains focused on expanding its capacity and market presence, with a strong cash position of $1 billion projected to sustain operations until profitability.
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