On Monday, Truist Securities began coverage on Legend Biotech Corp. (NASDAQ:LEGN) with a Buy rating and set a shares target of $88.00. The firm highlighted the company's successful launch of Carvykti, a new product for treating multiple myeloma, in collaboration with pharmaceutical giant Johnson & Johnson.
The coverage initiation comes as Legend Biotech's stock hovers near its 52-week low. Truist Securities expressed confidence in the future performance of Carvykti, suggesting that the product stands out in its market class.
According to the firm, the market for multiple myeloma treatments is large enough to accommodate several new therapeutic approaches, and Legend Biotech's partnership with Johnson & Johnson positions Carvykti well for staying at the forefront of this space.
The analyst from Truist Securities noted that Legend Biotech's share of Carvykti sales is the primary driver behind the $88 price target, which represents a potential upside of over 90%. The firm anticipates that Carvykti will return to revenue growth in the next six months, which could lead to a revitalization of Legend Biotech's stock.
The firm's positive outlook is based on the expectation that Carvykti will advance to earlier lines of therapy, maintaining its competitive edge. The analyst's comments underscore the belief that the current lower stock price presents a favorable buying opportunity for investors.
Truist Securities' coverage initiation and optimistic price target reflect a strong endorsement of Legend Biotech's strategic direction and the commercial prospects of its flagship product, Carvykti. The firm's analysis suggests that recent developments and near-term expectations could provide significant momentum for Legend Biotech's shares in the market.
InvestingPro Insights
As Legend Biotech Corp. (NASDAQ:LEGN) garners a buy rating from Truist Securities with a robust price target of $88.00, a glance at real-time data from InvestingPro provides additional context for investors. Legend Biotech's market capitalization stands at approximately $7.74 billion, reflecting the company's substantial size in the biotechnology space. Notably, analysts have revised their earnings upwards for the upcoming period, indicating a positive shift in expectations which aligns with Truist Securities' optimistic outlook.
Despite not being profitable over the last twelve months, Legend Biotech holds more cash than debt on its balance sheet, a sign of financial prudence that could support sustained investment in its product pipeline. Furthermore, the company's liquid assets exceed its short-term obligations, suggesting a solid footing to navigate near-term financial challenges.
InvestingPro Tips reveal that while Legend Biotech is trading at a high revenue valuation multiple of 6.65 and a high Price / Book multiple, analysts are anticipating sales growth in the current year, which could justify the premium. Additionally, there are more tips available on InvestingPro for investors seeking deeper insights into Legend Biotech's financial health and market potential. For those interested, using the coupon code PRONEWS24 will secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive toolset for informed decision-making.
Overall, the InvestingPro data underscores the market's current valuation of Legend Biotech and the cautious optimism of analysts, which may serve as valuable information for investors considering the company's prospects alongside the recent coverage initiation.
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