TD Cowen maintains UCB stock Buy rating, EUR250 target

Published 25/03/2025, 20:30
TD Cowen maintains UCB stock Buy rating, EUR250 target

On Tuesday, TD Cowen analysts, led by Stacy Ku, reaffirmed their positive stance on UCB SA (UCB:BB) (OTC: UCBJY), maintaining a Buy rating and a price target of EUR250.00. The endorsement comes after a recent healthcare conference held in March 2025, where survey responses from physicians and payors were compiled, indicating a strong clinician outlook for UCB’s Bimzelx in the treatment of Hidradenitis Suppurativa (HS). According to InvestingPro data, UCB has demonstrated strong market performance with a 56% return over the past year, and analysts’ price targets range from $108.94 to $140.27, suggesting continued upside potential.

The analysts expressed optimism regarding the drug’s launch, suggesting that its adoption in HS is anticipated to meet, and potentially exceed, high expectations. The surveys conducted revealed Key Opinion Leader (KOL) enthusiasm for Bimzelx, which supports the belief in its significant market potential. Ku and the team at TD Cowen have projected a peak sales estimate for Bimzelx exceeding EUR6 billion, attributing over EUR3 billion of that figure to the HS indication alone. This potential aligns with UCB’s strong financial foundation, as evidenced by its perfect Piotroski Score of 9 on InvestingPro, indicating excellent financial health and operational efficiency.

The note from TD Cowen highlighted the scarcity value of UCB, as one of the few companies with clear visibility into its value drivers for the coming years. The firm anticipates that UCB will experience accelerating and durable earnings potential, reinforcing their confidence in the EUR6 billion-plus peak sales estimate for Bimzelx across its indications, which also include Psoriatic Arthritis (PsA) and Psoriasis (PsO).

The insights from the March 2025 Health Care Conference have played a crucial role in reaffirming TD Cowen’s stance. Unpublished survey data from the event has contributed to the firm’s conviction in the drug’s market opportunity and its potential to make a meaningful impact on the treatment landscape for HS.

UCB’s Bimzelx is poised to capitalize on a large underserved market, with investor interest growing due to the positive KOL commentary and the anticipated need for effective treatments in HS. The maintained price target of EUR250.00 reflects TD Cowen’s belief in the company’s strong prospects and aligns with their expectation of approximately 24 times the projected 2026 earnings for UCB. The company’s robust financial performance is reflected in its impressive 18.7% revenue growth and strong market position with a $35.9 billion market capitalization. Get deeper insights into UCB’s financial health metrics and growth potential with InvestingPro, which offers 12 additional investment tips and comprehensive financial analysis.

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