Halozyme Therapeutics (HALO) PT Raised to $58 at Leerink Partners
Leerink Partners analyst David Risinger raised the price target on Halozyme Therapeutics (NASDAQ: HALO) to $58.00 (from $56.00) while maintaining a Market Perform rating.
The analyst comments "Bottom line: We revised our model post-3Q results and bumped our DCF-derived PT from $56 to $58 (we left unchanged our discount rate of 8% and terminal growth rate of -15%). We view near- and medium-term growth prospects as strong, but we await future deal announcements with large pharma partners and potential MDASE licensing agreements. HALO reported 3Q24 EPS of $1.27, 14% above cons’ $1.11 due primarily to higher royalty revenues from Darzalex, Phesgo and VYVGART and a higher gross margin. HALO received $48M in collaboration milestones in 3Q, including $30M from the expanded ARGX (OP, Smith) collaboration (announced Oct. 3 but booked at the end of September). See variance table in the note. Mgmt raised its 2024 revenue midpoint by 4% from $538M to $558M and EPS midpoint 12% from $3.85 to $4.30. We bumped ’24 EPS by 2% from $4.10 to $4.19, close to the high end of the guidance range of $4.00- $4.20. We raised ‘25E EPS 6% from $5.12 to $5.40, driven by higher royalty revenues. Maintain MP rating on HALO."