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Investing.com - Guggenheim raised its price target on Regeneron Pharmaceuticals (NASDAQ:REGN) to $815 from $810 on Monday, maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, 10 analysts have recently revised their earnings estimates upward, with price targets ranging from $504 to $940. The stock, currently trading at $565.22, appears undervalued based on InvestingPro’s Fair Value analysis.
The firm noted that Regeneron’s quarterly performance exceeded investor expectations, driven by strong Dupixent sales and better-than-anticipated results from the Eylea franchise, which has faced competitive pressures and regulatory setbacks. Eylea HD showed a 16% quarter-over-quarter increase in unit demand, while Eylea 2mg experienced a 10% quarter-over-quarter decline. The company’s solid financial position is reflected in its healthy gross profit margin of 47.35% and robust return on equity of 15%.
Regeneron anticipates continued Eylea 2mg erosion in the second half of 2025, projecting approximately 10% quarter-over-quarter unit demand decline, while Eylea HD demand is expected to remain stable. The August PDUFA dates for Eylea HD will be delayed due to ongoing site inspection issues, with Novo Nordisk (NYSE:NVO), which owns Catalent (NYSE:CTLT), planning to submit FDA responses next week.
Dupixent sales exceeded Guggenheim’s estimates as launches for COPD and newly approved CSU and BP (NYSE:BP) indications gain momentum. Libtayo remains the leading anti-PD1 treatment in advanced CSCC and BCC melanomas, with sales growing 25% year-over-year and now annualizing to more than $1 billion.
Guggenheim also highlighted management comments suggesting a shift in Regeneron’s business development strategy, with the company now open to "considering differentiated later stage opportunities in areas with high unmet medical need" versus its previous focus on early-stage assets and platform technologies. With a strong current ratio of 4.6 and moderate debt levels, the company appears well-positioned for this strategic shift. For deeper insights into Regeneron’s financial health and growth potential, including 8 additional exclusive ProTips, visit InvestingPro.
In other recent news, Regeneron Pharmaceuticals reported strong quarterly earnings, with revenues reaching $3.7 billion, surpassing expectations by 13% according to Bernstein SocGen Group. This robust performance was largely attributed to strong sales of Dupixent and resilience in the Eylea franchise, despite facing competitive pressures and regulatory challenges. As a result of these impressive earnings, Bernstein raised its price target for Regeneron to $753, maintaining an Outperform rating.
Guggenheim also increased its price target to $815, highlighting strong Dupixent sales and a resilient showing from Eylea, with Eylea HD experiencing a 16% increase in unit demand. RBC Capital raised its price target to $695, citing "nice top-line beats" that could enhance market sentiment. Similarly, BMO Capital increased its target to $640, emphasizing a "much-needed clean quarter" for the company.
Moreover, Leerink Partners reiterated an Outperform rating with a price target of $645, projecting a 7% compound annual growth rate for revenue and 10% for earnings per share from 2025 to 2030. Analysts from these firms have shown confidence in Regeneron’s growth prospects, reflecting in their upgraded price targets and positive ratings.
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