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On Wednesday, Truist Securities revised its price target for Regeneron Pharmaceuticals stock, traded on (NASDAQ:REGN), lowering it to $975 from the previous target of $1,004. Despite the reduction, the firm maintained a Buy rating on the shares. The adjustment follows a period of decline for Regeneron’s stock, which has been affected by news related to its Eylea product and increasing competition in the market. Currently trading at $585.49, the stock has declined about 38% over the past six months, though InvestingPro analysis suggests the stock is trading below its Fair Value.
Truist Securities explained that the decision to adjust the price target was based on recent key opinion leader checks and information provided by management regarding first-quarter stocking dynamics and insurance coverage resets. These factors have introduced near-term headwinds, leading to changes in the firm’s financial model for Regeneron. Despite these challenges, InvestingPro data shows the company maintains robust financial health with more cash than debt on its balance sheet and a strong current ratio of 4.73, indicating excellent liquidity.
The sum-of-the-parts analysis conducted by Truist suggests that the current stock levels are not fully accounting for the value of Dupixent and the company’s cash reserves, as well as undervaluing Eylea and the drug pipeline. This view is supported by the company’s strong fundamentals, including a P/E ratio of 14.26 and robust revenue growth of 8.27% over the last twelve months. The analysis indicates that the market may be attributing minimal value to the long-term potential of Regeneron’s pipeline, which implies a bearish stance on the future outcomes of the company’s research and development efforts.
Despite these challenges, Truist Securities remains optimistic about Regeneron’s prospects, particularly with regard to upcoming pipeline readouts. The firm’s due diligence and consultations with key opinion leaders have reinforced its positive outlook on the stock, leading to the reiteration of the Buy rating.
In summary, while acknowledging the current obstacles faced by Regeneron, Truist Securities believes that the company’s stock is still a worthwhile investment, with significant potential value in its product pipeline that may not be fully recognized by the market at present. The new price target of $975 reflects these considerations, alongside the expectation of positive developments in the near future.
In other recent news, Regeneron Pharmaceuticals has been the focus of several analyst reports and regulatory developments. Cantor Fitzgerald reaffirmed its Overweight rating for Regeneron with a price target of $695, citing potential stabilization of Eylea sales due to expected approvals for a pre-filled syringe and treatment for retinal vein occlusion. The firm anticipates challenges in early 2025 earnings but sees potential upside in the stock, supported by Regeneron’s strong financial position and pipeline developments. Meanwhile, Guggenheim Securities adjusted Regeneron’s price target to $940, maintaining a Buy rating, despite noting competitive pressures on the Eylea franchise. The firm expects first-quarter Eylea sales to be around $1.18 billion, slightly below consensus, due to seasonal factors and inventory adjustments.
Additionally, the FDA has started a Priority Review of Regeneron’s EYLEA HD injection, which aims to reduce the frequency of dosing for retinal vein occlusion patients. This review follows positive data from the Phase 3 QUASAR trial, which demonstrated comparable visual acuity gains with fewer injections. Bernstein SocGen Group also adjusted its price target for Regeneron to $979, maintaining an Outperform rating while acknowledging anticipated headwinds for Eylea sales in early 2025. Despite these challenges, Bernstein remains optimistic about Regeneron’s growth prospects, highlighting potential catalysts in its pipeline and collaboration with Sanofi (NASDAQ:SNY). These developments reflect ongoing interest and varied perspectives among analysts regarding Regeneron’s future performance.
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