Rothschild Redburn initiates Regeneron stock with Buy rating, $890 target

Published 14/08/2025, 09:42
Rothschild Redburn initiates Regeneron stock with Buy rating, $890 target

Investing.com - Rothschild Redburn initiated coverage on Regeneron Pharmaceuticals (NASDAQ:REGN), currently trading at $561.55 with a market cap of $58.23 billion, with a Buy rating and a price target of $890.00, representing approximately 60% upside potential from current levels. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.

The firm’s valuation methodology combines discounted cash flow (DCF) and net present value (NPV) approaches, resulting in an average fair value of $824, which was projected forward at a 7.5% weighted average cost of capital (WACC) to arrive at the 12-month target. This bullish outlook is supported by strong fundamentals, with InvestingPro data showing a GOOD financial health score and 11 analysts recently revising their earnings estimates upward.

Rothschild Redburn’s valuation equates to 2026 estimated price-to-earnings and enterprise value-to-EBITDA multiples of 18.3x and 15.2x respectively, representing 39% and 45% premiums to the sector, which the firm argues is justified by expected sales and earnings growth. Currently, the stock trades at a P/E ratio of 13.36x and an EV/EBITDA of 9.72x.

The DCF analysis alone yields a fair value of $718 for Regeneron, assuming a 7.5% WACC and a 1.5% terminal growth rate, while the NPV-based valuation creates a higher fair value of $930 per share.

Combined with a 0.7% dividend yield, Rothschild Redburn calculates a one-year total shareholder return of approximately 61% for Regeneron Pharmaceuticals.

In other recent news, Regeneron Pharmaceuticals reported its second-quarter results, which surpassed expectations, driven by strong sales of Dupixent and Libtayo. Despite regulatory delays affecting its Eylea franchise, Eylea HD showed a 16% increase in unit demand, although Eylea 2mg saw a 10% decline. Guggenheim and RBC Capital both raised their price targets for Regeneron, with Guggenheim setting it at $815 and RBC Capital at $695, citing strong Dupixent sales and resilience from Eylea as key factors. Meanwhile, Truist Securities lowered its price target from $940 to $812 but maintained a Buy rating, acknowledging the robust quarterly performance. Cantor Fitzgerald also kept its Overweight rating, highlighting positive developments with Eylea HD despite regulatory challenges. These updates reflect a mixed but generally positive outlook from analysts on Regeneron’s recent performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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