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Investing.com - Truist Securities lowered its price target on Regeneron Pharmaceuticals (NASDAQ:REGN) to $812.00 from $940.00 on Monday, while maintaining a Buy rating on the stock. The new target aligns with the broader analyst consensus, with targets ranging from $543 to $815. According to InvestingPro analysis, REGN currently appears undervalued based on its Fair Value assessment.
The price target reduction follows Regeneron’s second-quarter 2025 results, which beat expectations on both top and bottom lines, driven by continued growth from Dupixent and Libtayo products. The company, with a market capitalization of $58.3 billion, generated $14.2 billion in revenue over the last twelve months, maintaining a healthy gross profit margin of 47.4%. InvestingPro data shows 12 analysts have recently revised their earnings estimates upward for the upcoming period.
Truist cited ongoing competitive pressure and pricing headwinds for Eylea, Regeneron’s macular degeneration treatment, as key factors in the revised outlook, modeling peak combined Eylea/Eylea HD sales of $3.2 billion by 2035, below the consensus estimate of $3.6 billion.
The firm also removed credit for itepekimab following Phase 3 data for the chronic obstructive pulmonary disease (COPD) treatment candidate, contributing to the lower price target.
Despite these concerns, Truist maintained its Buy rating, highlighting potential near-term value inflection points from additional product launches and label expansions, along with what it described as a "robust and maturing pipeline with best-in-class profiles across multiple therapeutic areas."
In other recent news, Regeneron Pharmaceuticals reported strong second-quarter results, driven by notable sales of Dupixent and a resilient performance from its Eylea franchise. Guggenheim raised its price target for Regeneron to $815 from $810, maintaining a Buy rating, citing these results. Eylea HD saw a 16% increase in unit demand quarter-over-quarter, while Eylea 2mg experienced a 10% decline. Similarly, RBC Capital increased its price target to $695 from $688, maintaining a Sector Perform rating due to the company’s strong top-line performance. BMO Capital also raised its price target to $640 from $600, noting a "much-needed clean quarter" for Regeneron. Leerink Partners reiterated an Outperform rating with a price target of $645, highlighting the company’s growth prospects and valuation. Leerink projects a 7% compound annual growth rate for revenue and a 10% growth rate for earnings per share from 2025 to 2030. Management’s focus on Lynozyfic in multiple myeloma, with plans for a head-to-head trial against Darzalex, was also noted. These developments reflect the company’s strong market position and potential for future growth.
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