Roth Affirms Regeneron (REGN) at 'Buy' Following Q4 Results; Sees Opportunity in Shares on Pullback
Roth Capital reaffirmed Regeneron (Nasdaq: REGN) at Buy with a price target of $555 after the company reported Q4 EPS of $2.83 and revenue of $1.1 billion, versus consensus estimates calling for EPS of $3.31 and revenue of $1.17 billion, this week.
Analyst Joseph Pantginis commented: REGN's shares have not been immune to the enhanced market turbulence surrounding healthcare stocks. However, this overselling presents a compelling opportunity to take part in the continued growth of the company's approved products' growth and a pipeline which includes the greatest number of anticipated INDs filed this year.
Our oversold thesis is bolstered, in our belief, in that nothing has changed regarding expectations across programs: 1) Eylea is starting to mature and peak sales will start to hit in the next 1-2 years, in our belief - no surprise here; 2) management theme for a gradual Praluent launch is unchanged - no surprise here; 3) while costs are increasing, producing some EPS volatility in our belief, these expenditures are based on bringing new potential blockbusters to the market in the near term, namely sarilumab and dupilumab, and; 4) the company will submit a record number of INDs this year, fueling the long term pipeline. Lastly, we expect a significant amount of new flow this year, which should keep visibility high for lead pipeline candidates
the analyst noted.
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