CTAs are almost max long in equities, have very limited room to buy: UBS
On Monday, RBC Capital reiterated its Outperform rating for Legend Biotech Corp. (NASDAQ: LEGN) with a price target of $78.00, representing significant upside from the current price of $28.95, which sits near its 52-week low. The decision follows a dinner hosted by RBC Capital with a key opinion leader (KOL) specializing in multiple myeloma, who expressed a bearish stance on cell therapy and Carvykti, a product by Legend Biotech.
Despite the KOL’s cautious view, RBC Capital analysts believe that Legend Biotech remains undervalued, a view supported by InvestingPro data showing impressive revenue growth of 112% over the last twelve months. The analysts highlighted potential growth opportunities for Carvykti, citing significant community referrals and its effectiveness and safety profile, which could drive broader adoption. The company maintains a strong financial position with a current ratio of 5.2, indicating robust liquidity.
Concerns about competition from anitocel were noted as an ongoing challenge for Legend Biotech shares. However, RBC Capital analysts emphasized the potential for Carvykti to gain traction, considering its perceived value at current stock levels. According to InvestingPro, which offers comprehensive analysis of over 1,400 stocks, Legend Biotech shows several promising indicators despite current challenges with profitability.
The analysts expressed confidence in Legend Biotech’s prospects, pointing to anticipated revenue growth and the company’s resilience to macroeconomic factors. They suggested that the stock’s current valuation does not fully reflect these positive attributes.
RBC Capital’s reaffirmation of the Outperform rating underscores its belief in Legend Biotech’s potential for growth, despite competitive pressures in the cell therapy market.
In other recent news, Legend Biotech Corp. reported total revenues of approximately $195 million for the first quarter of 2025, which fell short of Raymond (NSE:RYMD) James’ estimate of $203 million. The company’s earnings per share showed a loss of $0.27, exceeding the anticipated loss of $0.19 per share. Carvykti, Legend Biotech’s treatment for multiple myeloma, generated revenues of approximately $185.6 million during the quarter, marking a 10% quarter-over-quarter increase and 127% growth year-over-year. Analysts from BMO Capital and RBC Capital have maintained their Outperform ratings for the company, with price targets set at $90 and $78, respectively. TD Cowen also reaffirmed a Buy rating with a $62 price target, noting strong Carvykti sales growth and the company’s robust capacity expansion plans. Truist Securities adjusted its price target to $71, maintaining a Buy rating, reflecting a more conservative outlook on Carvykti’s growth trajectory. Raymond James continues to support an Outperform rating with an $86 price target, citing the competitive positioning of Carvykti and its market presence. Legend Biotech’s cash position remains solid at around $1.0 billion, expected to sustain operations until profitability is reached by the end of 2025 for Carvykti and in 2026 for the company overall.
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