Jefferies trims Regeneron stock outlook, highlights 2H25 readouts

EditorAhmed Abdulazez Abdulkadir
Published 01/14/2025, 01:34 AM
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On Monday, Jefferies analyst Akash Tewari adjusted the price target for Regeneron (NASDAQ:REGN) Pharmaceuticals, traded on NASDAQ:REGN, to $1,120 from the previous $1,200, while reiterating a Buy rating on the company's shares. The adjustment followed Regeneron's pre-announcement of its fourth-quarter numbers, which revealed a significant beat in US LD Eylea sales by approximately $126 million, or 12%, and a shortfall in HD sales by about $111 million, or 27%. The report also noted an $85 million inventory benefit.

Tewari noted that despite the need for Regeneron to strengthen its pipeline, the investment proposition appears more appealing, especially if consensus numbers are adjusted. Jefferies' own forecasts are set at $1.9 billion versus the consensus of $2.2 billion for 2025 HD Eylea and $3 billion against $3.1 billion for LD Eylea. Additionally, continued growth is expected from Dupixent (Dupi).

The analyst also advised investors to watch for several key developments expected in the second half of 2025. These include trial readouts for IL33 in COPD, LAG3 in melanoma, and myostatin for obesity. Furthermore, the planned launch of HD Eylea's progression-free survival (PFS) data is anticipated in mid-2025, which could be a significant event for the company.

Regeneron's financial performance in the fourth quarter, particularly the outperformance of US LD Eylea, highlights the company's ability to exceed market expectations in certain segments. However, the miss in HD sales indicates challenges that the company may need to address moving forward.

The analyst's comments and the revised price target reflect a nuanced view of Regeneron's current position and future prospects, balancing the recent financial outcomes with the potential for growth and development in the company's product line.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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