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Investing.com --- HSBC initiated coverage of Regeneron with a Buy rating, saying the drugmaker is positioned to grow faster than the market expects as demand for Eylea HD improves and key oncology data approaches in 2026. The brokerage set a $890 target that implies about 21% upside.
HSBC said the market is pricing in a mid single digit revenue CAGR for 2025 to 2030, reflecting recent setbacks including slower-than-expected uptake of Eylea HD and pipeline disappointments such as the failure of itepekimab in COPD.
Those issues have raised questions about the company’s growth drivers as Dupixent moves toward patent expiry.
The brokerage said its outlook differs because regulatory progress on Eylea HD and upcoming oncology readouts offer a clearer path to medium term growth.
HSBC expects regulatory risks around Eylea HD to be resolved in the near term, which could support faster adoption through 2026.
The note pointed to the upcoming Fianlimab and Libtayo data in frontline melanoma as a key catalyst. HSBC said the combination could strengthen Regeneron’s position in immuno-oncology, with potential to become a best in class option if trial results are positive. That, alongside other clinical milestones, could support a rerating.
HSBC said Regeneron’s R&D platform remains a core strength, citing its history of developing multi billion dollar products including Eylea and Dupixent. The firm said that track record offers meaningful potential beyond the current late stage pipeline.
HSBC derived its $890 target using an adjusted present value model with an 8.2% WACC and 2% long term growth assumption, adding a premium to reflect regulatory risks tied to Eylea HD.