Gold is 2025’s best performer. UBS sees more upside
On Thursday, TD Cowen expressed continued optimism for Legend Biotech Corp. (NASDAQ: LEGN), maintaining a Buy rating and a price target of $62.00. Currently trading at $31.31, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $53 to $95. The firm anticipates a strong first-quarter performance for the company's product Carvykti, which is expected to surpass consensus estimates. Analysts predict Carvykti's global sales will reach $373 million, ahead of the consensus forecast of $355 million. This optimism is supported by Legend's impressive revenue growth of 120% over the last twelve months, with four analysts recently revising their earnings estimates upward.
Legend Biotech is on track to double its capacity by 2025, aiming for 10,000 slots per year. This expansion is projected to fuel sequential sales growth each quarter, with the second quarter likely to see the highest increase. The company's strategy to monitor for delayed neurotoxicity, a potential side effect of Carvykti, could lead to a decrease in its occurrence. The firm's analysts believe that with this monitoring in place, Carvykti will become firmly established as the standard of care in second-line treatment, including in community settings, even before the launch of competitor anito-cel.
TD Cowen's positive outlook is based on the belief that Carvykti will be well-positioned in the market ahead of its competition. The analysts see an attractive risk/reward ratio for Legend Biotech's stock, as the company prepares to entrench its product within the treatment landscape.
Legend Biotech's efforts to increase Carvykti's capacity and implement effective monitoring for side effects are anticipated to contribute to the product's success and acceptance as a standard treatment option. The company's strategic positioning is expected to solidify its presence in the market before the introduction of similar treatments, offering potential benefits to both patients and investors. With a strong balance sheet showing a current ratio of 4.62 and more cash than debt, Legend appears well-positioned for its expansion plans. For deeper insights into Legend Biotech's financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, explore InvestingPro's detailed research report.
In other recent news, Legend Biotech has reported its fourth-quarter 2024 earnings, with management expressing optimism for strong performance in 2025, highlighting sequential growth and long-term expansion plans. Analysts from RBC Capital Markets have maintained an Outperform rating, projecting Carvykti revenues to reach approximately $1.93 billion in 2025, citing the company's trajectory towards profitability and robust growth prospects. H.C. Wainwright also reiterated its Buy rating, raising the price target to $75, aligning with expectations of meeting 2025 consensus estimates for Carvykti sales at $1.9 billion. Additionally, Piper Sandler maintained an Overweight rating, predicting significant growth in global net sales for Carvykti, expecting an 82% increase from 2024 to 2025, and continued expansion to $2.9 billion in 2026. The company plans to expand its manufacturing capacity to produce 10,000 autologous doses by the end of 2025, with a collaboration with Johnson & Johnson. BMO Capital Markets reinforced their Outperform rating with a $90 target, citing positive investor sentiment and anticipated revenue growth due to facility expansions. The firm noted that real-world evidence could address concerns about Carvykti’s neurotoxicity effects, potentially enhancing the stock's performance. Overall, these recent developments underline the analysts' confidence in Legend Biotech’s strategic growth and operational stability.
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