TD Cowen maintains Buy on Takeda, reiterates $16 target

Published 21/05/2025, 15:22
TD Cowen maintains Buy on Takeda, reiterates $16 target

On Wednesday, TD Cowen reaffirmed its positive stance on Takeda Pharmaceutical (TADAWUL:2070) shares, maintaining a Buy rating and a $16.00 price target. The firm’s analysis indicates that Takeda Pharmaceutical (NYSE:TAK), currently trading at $14.34, has several key developments to watch, including upcoming data readouts for rusfertide, oveporexton, and zasocitinib. According to InvestingPro data, analysts’ consensus price targets range from $15.71 to $18.77, suggesting potential upside.

According to TD Cowen, the absence of Most Favored Nation (MFN) pricing from the recent reconciliation package is seen as a positive for the company. While MFN poses a risk, the lack of details and its exclusion from the package suggest a less immediate threat. The firm also noted that Takeda is minimally affected by tariffs, and although FDA disruptions have been minor, potential NIH budget cuts could pose a long-term concern. InvestingPro analysis shows the company maintains strong financial health with a ’GOOD’ overall score and has consistently paid dividends for 34 consecutive years.

The commentary from TD Cowen highlighted the strength of the China biopharma ecosystem, which could be beneficial for Takeda. Additionally, the firm anticipates continued growth for Entyvio, one of Takeda’s key products.

TD Cowen updated its model for Takeda, reflecting these insights and the anticipated data releases. The reiterated price target of $16.00 suggests confidence in the company’s ability to navigate the current pharmaceutical landscape and capitalize on its upcoming product readouts.

In other recent news, Takeda Pharmaceutical Co. Ltd. has announced the continuation of its stock compensation plan for directors and management in Japan for 2025. This plan, disclosed in a Form 6-K filed with the U.S. Securities and Exchange Commission, is part of Takeda’s strategy to align management interests with those of shareholders. The company did not disclose specific terms or the number of shares to be granted, which is typical for such filings. Meanwhile, Morgan Stanley (NYSE:MS) has upgraded Takeda’s stock rating from Equalweight to Overweight, raising the price target from JPY4,300.00 to JPY5,500.00. This marks the first Overweight rating from Morgan Stanley for Takeda since 2017, reflecting increased confidence in the company’s growth prospects. Analysts attribute this optimism to Takeda’s promising pipeline and stable portfolio, which includes plasma-derived therapies and orphan drugs. The lack of major patent expirations is also seen as a stabilizing factor for the company’s earnings. These developments indicate a positive outlook for Takeda’s future performance in the market.

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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