On Wednesday, Halozyme (NASDAQ:HALO) Therapeutics, Inc. (NASDAQ:HALO) saw its stock price target increased by TD Cowen from the previous $59.00 to a new target of $65.00. The firm has reiterated its Buy rating on the shares of the biopharmaceutical company. The adjustment follows Halozyme's reported earnings for the second quarter, which exceeded expectations due to robust collaboration revenues and sales of ENHANZE API.
The company's recent financial performance has been bolstered by significant royalty growth from products such as Darzalex Faspro and Phesgo. TD Cowen highlighted the importance of Vyvgart Hytrulo's global expansion as a critical factor for the company's future growth.
Moreover, the analyst pointed out that several subcutaneous (SC) product launches are on the horizon, with Prescription Drug User Fee Act (PDUFA) dates set for Ocrevus and Tecentriq on September 13 and September 15, respectively, and for Opdivo on December 29.
These upcoming product launches are deemed to be currently underappreciated by the market. According to TD Cowen, the introduction of these products, along with the expected launch of 10 ENHANZE drugs by the year 2025, has the potential to double Halozyme's earnings per share (EPS) by 2028. This projection forms the basis for the newly established $65.00 price target, which represents a $6.00 increase from the previous target.
The analyst's comments provided a positive outlook for Halozyme's financial trajectory, indicating confidence in the company's ability to capitalize on its current assets and pipeline to drive growth. The reiterated Buy rating suggests that TD Cowen sees continued potential in Halozyme's stock performance in light of these developments.
In other recent news, Halozyme Therapeutics has secured several significant developments. The biopharmaceutical company recently received FDA approval for its VYVGART Hytrulo, a treatment for chronic inflammatory demyelinating polyneuropathy, marking the product's second FDA approval. This follows successful outcomes from the ADHERE study, which demonstrated significant clinical improvement in a majority of participants.
Halozyme has been granted a new European Union patent for its ENHANZE technology, extending its protection until March 2029. This patent is crucial for the protection of DARZALEX SC, a treatment for multiple myeloma, in the EU market.
In terms of financial performance, Halozyme reported strong Q1 results, with a 15% year-over-year royalty growth for the 15th consecutive quarter. The company projects a 10-19% increase in total revenue for the year, amounting to between $915 million and $985 million. EBITDA is anticipated to grow by 26-37%, reaching $535 million to $585 million, while non-GAAP EPS growth is forecasted at 28-41%, resulting in $3.55 to $3.90 per share.
Several analysts have also made recent assessments of Halozyme's performance. H.C. Wainwright maintained a Buy rating, Wells Fargo (NYSE:WFC) raised its price target while retaining an Overweight rating, and Piper Sandler downgraded the stock from Overweight to Neutral, but raised its price target.
InvestingPro Insights
Following the upbeat analysis by TD Cowen, Halozyme Therapeutics, Inc. (NASDAQ:HALO) stands out with several compelling financial metrics and market indicators. With a market capitalization of approximately $7.09 billion, the company presents a P/E ratio of 20.85, which aligns with TD Cowen's positive outlook, indicating that the stock may be trading at a reasonable price relative to its near-term earnings growth. This is further supported by a PEG ratio of just 0.24, suggesting that the company's earnings growth may not be fully reflected in its current share price.
Halozyme's financial health is robust, with gross profit margins reaching an impressive 71.21%, and the company's ability to generate earnings before interest, taxes, depreciation, and amortization (EBITDA) has grown significantly, with a 20.02% increase over the last twelve months as of Q2 2024. In terms of stock performance, Halozyme has seen a strong return over the last three months, with a 26.04% price total return, and is trading near its 52-week high, at 97.57% of this peak value.
Investors considering Halozyme as a potential addition to their portfolio can find additional insights with InvestingPro Tips. For instance, management's strategy of aggressively buying back shares and the company's liquid assets surpassing short-term obligations could be seen as indicators of confidence in the company's future.
Moreover, Halozyme has been profitable over the last twelve months and analysts predict profitability for this year as well, which may provide further assurance to investors. For those seeking more in-depth analysis, there are 12 additional InvestingPro Tips available at https://www.investing.com/pro/HALO.
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