TD Cowen has adjusted its outlook on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), lowering the price target to $120 from $125, yet the firm continues to recommend a Buy rating for the stock.
The revision follows BioMarin's second-quarter revenue and non-GAAP earnings per share (EPS), which surpassed expectations, coming in at $712 million versus the anticipated $662 million, and a non-GAAP EPS of $0.96 compared to the estimated $0.52.
The company also announced an increase in its revenue and EPS guidance for the year 2024. In line with these developments, BioMarin plans to reduce spending on Roctavian to $60 million annually.
The strategy for Roctavian will now be more focused, targeting markets in the U.S., Italy, and Germany with the aim to enhance the profitability of the franchise by the end of 2025.
Furthermore, the firm has scheduled an investor day for September 4, where the discussions will center on capital allocation, long-term strategy, and an overview of the company's pipeline. Despite the lowered price target, the analyst's outlook remains optimistic about BioMarin's financial performance and strategic planning.
BioMarin reported a successful second quarter in 2024, with noteworthy advancements in its product portfolio and financial performance. The company announced robust quarterly results, including a record total revenue of $712 million, and raised its full-year revenue guidance to between $2.75 billion and $2.825 billion, representing a 15% increase in year-over-year growth.
BioMarin's commitment to profitability, particularly with its hemophilia treatment ROCTAVIAN, is on track, with plans to make the drug profitable by the end of 2025.
InvestingPro Insights
As BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) continues to focus on strategic markets and streamline operations, InvestingPro data presents a snapshot of the company's current financial health. With a market capitalization of $15.28 billion, BioMarin is trading at a P/E ratio of 60.19, which adjusts to 54.14 when considering the last twelve months as of Q2 2024. This valuation is placed within a context of a robust revenue growth of nearly 15.83% over the same period, highlighting the company's ability to increase its earnings.
InvestingPro Tips suggest that BioMarin is expected to grow its net income this year and is trading at a low P/E ratio relative to near-term earnings growth. These insights are particularly relevant as they align with the analyst's optimism regarding BioMarin's financial performance. Additionally, the company's stock tends to exhibit low price volatility, which may appeal to investors seeking stability in their portfolio. For those looking for more comprehensive analysis, there are over 10 additional InvestingPro Tips available, which delve deeper into the company's financial metrics and market position.
With the next earnings date set for October 23, 2024, and a fair value estimated at $88.78 by InvestingPro, compared to the analyst target of $112, investors will be watching closely to see if BioMarin's strategic initiatives will lead to the anticipated profitability by the end of 2025.
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