Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Tuesday, TD Cowen analysts maintained their Buy rating for Halozyme Therapeutics (NASDAQ:HALO) stock, with a price target of $79.00. The decision comes as the company slowly recovers from a mid-May pullback related to potential impacts from the Centers for Medicare & Medicaid Services (CMS).
The analysts conducted a sensitivity analysis on potential pricing impacts from the Inflation Reduction Act (IRA), suggesting that Halozyme shares remain undervalued. They noted that a possible "worst-case" scenario, which could see a 50% hit to U.S. revenues for drugs like Darzalex and Opdivo in 2028 and Ocrevus in 2030, might reduce total royalties by approximately 23% and earnings per share by $1.04. InvestingPro data reveals the company maintains strong fundamentals with a perfect Piotroski Score of 9, with 11 additional exclusive insights available to subscribers.
Despite these potential challenges, TD Cowen analysts highlighted that the current valuation does not account for any of Halozyme’s multiple potential growth opportunities in the coming five years. They consider it unlikely that none of these opportunities will materialize.
Halozyme Therapeutics, listed on the NASDAQ under the ticker HALO, has been navigating the implications of the CMS pricing adjustments while maintaining a positive outlook on its long-term prospects.
In other recent news, Halozyme Therapeutics announced that the European Commission has approved a new subcutaneous formulation of Opdivo, developed with Halozyme’s ENHANZE technology, for treating various adult solid tumors. This approval follows a similar authorization from the U.S. Food and Drug Administration in December. Analysts from H.C. Wainwright maintained a Buy rating on Halozyme, with a $72 price target, highlighting the significance of this regulatory milestone. Meanwhile, JMP Securities reaffirmed a Market Outperform rating, with a $78 price target, despite concerns over potential Medicare pricing impacts on ENHANZE technology-based drugs.
Morgan Stanley (NYSE:MS), however, downgraded Halozyme’s stock from Overweight to Equalweight and lowered the price target to $62, citing concerns over draft guidance that might affect combination products. The Centers for Medicare & Medicaid Services (CMS) draft guidance could impact drug pricing, but Halozyme’s management emphasized the clinical benefits of their technology. Evercore ISI also reiterated an Outperform rating, focusing on the ongoing debate about the clinical significance of Halozyme’s hyaluronidase in drug formulations. The outcome of these discussions could influence the future classification and pricing of Halozyme’s products.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.