On Friday, UBS increased its price target for Regeneron (NASDAQ:REGN) Pharmaceuticals (NASDAQ: REGN), setting the new mark at $1,250 up from the previous $1,124, while reaffirming its Buy rating on the stock. The adjustment reflects the firm's optimism about the company's revenue prospects, particularly noting the higher-than-expected Sanofi (NASDAQ:SNY) collaboration revenue.
UBS's revenue projections for Regeneron are slightly above the consensus, with an estimate of $3.45 billion compared to the consensus of $3.37 billion. This estimate is largely influenced by the robust performance anticipated from the company's collaboration with Sanofi.
However, at the earnings per share (EPS) level, UBS's forecast is somewhat conservative. They expect Regeneron to report a quarterly EPS of $10.48, which is 5.8% lower than the FactSet consensus of $11.13, yet aligns with the average estimate compiled by Regeneron itself.
The rationale behind the increased price target lies in the promising outlook for Regeneron's muscle-sparing obesity pipeline, which has recently shown positive safety results from its Phase 1 study. UBS has applied a 24x price-to-earnings (P/E) valuation for the year 2025, an uptick from the prior 20.5x, attributing this change to the higher growth potential foreseen for the company's innovative treatments.
Despite the optimistic growth projections, UBS has made a slight downward revision to its 2025 EPS prediction for Regeneron, now setting it at $52.07, a decrease from the earlier forecast of $54.81. This adjustment takes into account revisions to cost-related items such as cost of goods sold (COGS) and cost of collaboration and contract manufacturing (COCM).
Regeneron's stock price target uplift by UBS signals confidence in the company's growth trajectory, underpinned by its strategic collaborations and promising developments in its product pipeline.
In other recent news, Regeneron Pharmaceuticals has been the subject of several key developments.
The company's strategic focus on genetic medicine has been emphasized by senior leadership, including an investment in genetic medicine and an anticipation of its growing mainstream presence. This strategy is bolstered by collaborative efforts and a mergers and acquisitions strategy.
Additionally, the company's stock has seen various price target adjustments from several analyst firms. BMO Capital Markets maintained an Outperform rating with a price target of $1,082.00, Argus Research raised its price target to $1,170, and RBC Capital Markets increased its target to $1,200. TD Cowen also held a Buy rating with a price target of $1,030.00.
Regeneron's product portfolio has also seen advancements, including FDA approval for Kevzara to treat children with active polyarticular juvenile idiopathic arthritis and expanded approval for Praluent. The company is also anticipating FDA and European Commission approvals for linvoseltamab and Dupixent for various treatments.
InvestingPro Insights
Regeneron Pharmaceuticals (NASDAQ: REGN) has been the subject of positive adjustments from UBS, and a closer look at the real-time metrics from InvestingPro further enriches the picture of the company's financial health and market position. With a robust market capitalization of $118.71 billion and a P/E ratio of 30.41, Regeneron stands out in the biotechnology field. The company's financials are solid, with a gross profit margin of 51.31% over the last twelve months as of Q1 2024, demonstrating its ability to maintain profitability.
InvestingPro Tips highlight that Regeneron's management has been proactively buying back shares, a sign of confidence in the company's value. Additionally, the stock is noted for its low price volatility, which might appeal to investors looking for stability in the biotech sector. For those considering capitalizing on Regeneron's performance, the company has also been trading near its 52-week high, reflecting strong market sentiment.
Investors seeking a more comprehensive analysis can find additional insights on InvestingPro, including 14 more tips that delve deeper into Regeneron's financials and market performance. To access these valuable tips, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a more informed investment strategy.
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