On Thursday, Deutsche Bank (ETR:DBKGn) initiated coverage on the stock of Legend Biotech Corp. (NASDAQ:LEGN) with a Buy rating and set a price target of $60.00. The firm's analysis suggests that the company's stock is poised for growth in the second half of 2024 due to anticipated benefits from increased patient slots and manufacturing capacity for its product, Carvykti.
The analyst from Deutsche Bank highlighted that the positive outlook is rooted in the expectation that Carvykti sales will see a significant boost following these expansions. Carvykti is a treatment for multiple myeloma, and the analyst's optimism is partly based on the upcoming results from the CARTITUDE-2 study, specifically Cohort D, which involves newly diagnosed myeloma patients.
The coverage initiation comes at a time when Legend Biotech is focusing on the development and commercialization of Carvykti. The treatment has garnered attention for its potential to address a form of cancer that affects plasma cells in the bone marrow.
Legend Biotech's approach to treating newly diagnosed myeloma is under close examination, with the company eagerly awaiting the outcomes of its ongoing clinical trials. The results from these studies are expected to play a crucial role in the company's prospects and the performance of its stock.
The $60 price target set by Deutsche Bank reflects confidence in Legend Biotech's strategy and the market's reception of Carvykti. The analyst's commentary underscores the importance of the upcoming period for the company as it seeks to establish a stronger foothold in the myeloma treatment market.
InvestingPro Insights
As Legend Biotech Corp. (NASDAQ:LEGN) makes headlines with Deutsche Bank's optimistic coverage, InvestingPro data and tips provide a multi-dimensional view of the company's financial health and market performance. With a market cap of $7.77 billion and a significant revenue growth of 206.05% over the last twelve months as of Q1 2024, Legend Biotech demonstrates a robust expansion trajectory. However, the company's gross profit margin stands at a concerning -63.84%, reflecting cost challenges that may impact profitability.
InvestingPro Tips indicate that Legend Biotech holds more cash than debt, suggesting a strong balance sheet, and analysts are revising earnings upwards, signaling potential optimism in the company's financial outlook. Nevertheless, the company is not expected to be profitable this year, and it is trading near its 52-week low, which may present a buying opportunity for long-term investors who are confident in the company's growth prospects.
For readers interested in a deeper dive into Legend Biotech's financials and future performance estimates, there are additional InvestingPro tips available. Enhance your investment strategy with these insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.