On Monday, a Benchmark analyst maintained a Buy rating on Ligand Pharmaceuticals (NASDAQ:LGND), with a price target of $135.00.
According to InvestingPro data, analyst targets range from $125 to $160, with the stock showing impressive momentum, gaining over 60% year-to-date. The endorsement came after Ligand Pharma confirmed its financial guidance for the full year of 2024 during its recent Investor and Analyst Day.
The company also offered an initial outlook for 2025, projecting revenue growth between 10% and 20%, alongside improved earnings. InvestingPro analysis reveals the company maintains strong financial health with a "GREAT" overall score and an impressive gross margin of 78.8%.
Ligand Pharma's financial performance expectations for the fourth quarter of 2024 are optimistic, with anticipated revenues of $39.0 million, a 39% increase. Adjusted earnings are forecasted at $1.05 per share.
Looking ahead to 2025, the company is expected to achieve $192.5 million in sales, marking an 18% rise from the estimated figures for 2024, with adjusted earnings anticipated to reach $6.05 per share, up from the $5.50 estimated for 2024.
The positive outlook for Ligand Pharma is further bolstered by the company's results for the fourth quarter of 2023, which included a gain from the sale of its shares in Viking Therapeutics (NASDAQ:VKTX). The analyst's reiteration of the Buy rating and price target reflects confidence in the company's growth trajectory and potential for increased shareholder value. InvestingPro subscribers can access 13 additional ProTips and a comprehensive analysis of LGND's valuation metrics, including its attractive PEG ratio of 0.3.
The $135 price target set by Benchmark represents a roughly 20% premium over the current trading levels of Ligand Pharma's shares. This target is being maintained in light of the company's consistent financial guidance and promising growth prospects for the coming years.
In other recent news, Ligand Pharmaceuticals has shown notable financial growth, with an impressive 58% increase in total revenue year-over-year for the third quarter of 2024. The company's projections for fiscal year 2025 indicate a 17% increase in revenue growth, ranging from $180 million to $200 million. This growth is anticipated to be propelled by twelve commercial-stage programs and a late-stage pipeline.
Analyst firms, RBC Capital Markets and Oppenheimer, have both updated their price targets on Ligand shares, with RBC raising it to $141 and Oppenheimer to $150, both maintaining an Outperform rating. These upgrades follow the company's Investor Day where management presented its financial guidance for 2025, indicating higher than consensus estimates for total revenue and adjusted core earnings per share.
Ligand's 2025 financial outlook includes royalty revenue between $135 million and $140 million, Captisol sales between $35 million and $40 million, and contract revenue in the range of $10 million to $20 million. The company also expects core adjusted earnings per diluted share to be between $6.00 and $6.25.
The company is actively assessing 25 potential investments, each with an average targeted investment size of $30 million to $40 million. This strategic approach reflects Ligand's robust financial health and long-term royalty revenue growth projected at a compound annual rate of over 22%.
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