Analyst raises Lantheus stock target by $35, holds Buy ahead of Q2 earnings

Published 23/07/2024, 18:12
Analyst raises Lantheus stock target by $35, holds Buy ahead of Q2 earnings

On Tuesday, TD Cowen demonstrated a positive outlook on Lantheus Holdings (NASDAQ:LNTH), raising the price target on the company's shares to $145 from the previous $110, while maintaining a Buy rating.

The firm's revised price target comes as a result of an update to their model for Lantheus Holdings ahead of the company's second-quarter earnings for the year 2024.

The adjustment in the price target is based on a Discounted Cash Flow (DCF) analysis, reflecting an alignment with the anticipated revenue and earnings per share (EPS) for the full year of 2024. The new estimates provided by TD Cowen have transitioned to a non-GAAP basis, a change from the previously utilized GAAP metrics.

TD Cowen's analysis indicates a confidence in Lantheus Holdings' ability to meet its full-year 2024 guidance, which has been factored into the updated valuation. The firm's maintenance of a Buy rating suggests that they foresee continued positive performance from Lantheus Holdings in the market.

The updated price target of $145 represents a significant increase and sets a new expectation for the potential growth of Lantheus Holdings' stock value. Investors and market watchers will likely monitor the company's upcoming earnings release to assess whether the performance aligns with TD Cowen's projections.

In other recent news, Lantheus Holdings has acquired Meilleur Technologies, a move that bolsters its Alzheimer's disease diagnostic capabilities. This acquisition grants Lantheus exclusive global rights to the β amyloid PET imaging agent NAV-4694, currently in Phase 3 development. CEO Brian Markison expressed confidence in the combined capabilities of MK-6240 and NAV-4694 in providing critical insights for novel Alzheimer's treatments.

In addition, Lantheus Holdings, Opendoor (NASDAQ:OPEN) Technologies, and Marathon Digital (NASDAQ:MARA) Holdings have seen significant growth in their market valuations. Analysts from InvestingPro have set fair value estimates for these companies at $138.02, $2.92, and $23.82 respectively, indicating a positive market outlook.

Similarly, Hawaiian Electric Industries (NYSE:HE) and Sunrun (NASDAQ:RUN) Inc. have demonstrated substantial gains, reflecting investor confidence and market momentum. InvestingPro's fair value estimates for these companies stand at $13.16 and $13.42 respectively.

InvestingPro Insights

Following TD Cowen's optimistic assessment of Lantheus Holdings (NASDAQ:LNTH), a look at the real-time data from InvestingPro provides additional context for investors. Lantheus Holdings boasts a strong Market Cap of $7.98 billion and an adjusted P/E Ratio over the last twelve months as of Q1 2024 of 21.76, indicating a robust valuation compared to earnings. The company's Revenue Growth has been impressive, with a 32.98% increase over the last twelve months as of Q1 2024, underscoring the potential for continued expansion.

InvestingPro Tips highlight the company's solid financial position, with liquid assets surpassing short-term obligations and cash flows that can comfortably cover interest payments. Lantheus operates with a moderate level of debt, which aligns with a sustainable growth strategy. Notably, the company has experienced a remarkable price uptick over the last six months, with a 118.52% total return, and analysts predict profitability for this year.

For investors looking to delve deeper into Lantheus Holdings' financials and performance metrics, InvestingPro offers a comprehensive suite of additional tips. There are currently 9 more InvestingPro Tips available for LNTH, which can be accessed through the InvestingPro platform. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, adding valuable insights to their investment decision-making process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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