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Investing.com - Truist Securities downgraded Lantheus Holdings (NASDAQ:LNTH) from Buy to Hold on Monday, slashing its price target to $63.00 from $111.00 amid concerns about the company’s PYLARIFY product performance. The stock, which InvestingPro data shows is trading below its Fair Value, has fallen nearly 20% in the past week, with eight analysts recently revising earnings estimates downward.
The downgrade comes as Truist anticipates Lantheus could face approximately six months of stagnation until clarity emerges on whether the second half of 2025 will mark the bottom for PYLARIFY, following two quarters of missed expectations and lowered guidance. Despite these challenges, the company maintains strong fundamentals with a healthy current ratio of 4.29x and operates with moderate debt levels.
Despite the near-term caution, Truist still recognizes "underappreciated value" in Lantheus’ long-term pipeline and double-digit revenue and earnings growth potential beginning in late 2026 through 2027 and beyond.
The firm noted that once a next-generation "PYL 2.0" becomes available, the current disadvantages related to TPT (Transitional Pass-Through) should dissipate as multiple high-margin growth engines begin accelerating.
Truist indicated it would reconsider its rating in a few quarters, suggesting the post-TPT PYLARIFY bottom "could be a moving target" with four more quarters of MUC price disadvantage ahead, making it "a bit too early to underwrite" the compelling growth acceleration story expected for late 2026-2027.
In other recent news, Lantheus Holdings has reported its second-quarter 2025 earnings, which fell short of expectations. The company posted an adjusted earnings per share (EPS) of $1.57, missing the anticipated $1.67. Additionally, Lantheus reported revenue of $378 million, which was below the expected $389.14 million. Following these results, Goldman Sachs adjusted its price target for Lantheus to $110, citing concerns over Pylarify and a 10% reduction in the company’s fiscal year 2025 guidance. JMP Securities also lowered its price target for Lantheus to $73, attributing the change to competitive pricing pressures from Blue Earth Diagnostics. Despite the lowered targets, Goldman Sachs maintained a Buy rating, while JMP Securities kept a Market Outperform rating. These developments highlight recent challenges faced by Lantheus in the competitive landscape.
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