Ligand (LGND) Reiterated at Buy by H.C. Wainwright, Strong Partnerships and Cash Position Should Drive Future Value

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $310.00 price target on Ligand Pharma (NASDAQ: LGND), following the company's most recent quarterly report.

The analyst quotes: "We reiterate our Buy rating and $310 price target. Our target is based on sum-of-the-parts including: (1) a clinical NPV model of assets in Phase 2 development or greater (currently 20 out of more than 200 assets under development); and (2) NPV of current revenues based on our projections for royalties, material sales, and collaborative revenue. We believe that Ligand's strong cash position should prove incremental in driving future value for the company based on acquisitions and signed partnerships for current technology platforms such as liver targeting, Captisol, and especially OmniAb. We also point out that a significant number of assets are not included in our valuation as well as the growing number of candidates being generated from OmniAb partnerships. Our clinical NPV model allows us to flex multiple assumptions affecting a drug's potential commercial profile. Overall, we believe that our valuation projections should be supported by continued news flow out of partnered assets, new deals, and continued business development activities. Factors that could impede reaching our price target include failed or inconclusive clinical trials, insufficient traction of commercialized drugs, and or inability of the company to secure adequate funding to progress its drugs through the development pathway."

For an analyst ratings summary and ratings history on Ligand Pharma click here. For more ratings news on Ligand Pharma click here.

Shares of Ligand Pharma closed at $112.21 yesterday.

By Vlad Schepkov | [email protected]

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