Market Overview

Roth Capital Likes Ligand, But Valuation Renders Shares 'Increasingly Speculative'

Share:
Roth Capital Likes Ligand, But Valuation Renders Shares 'Increasingly Speculative'
Related LGND
The Daily Biotech Pulse: FDA Nods For Adamis, Eli Lilly, Pfizer; Spero, Obseva Report Positive Trial Results
10 Biggest Price Target Changes For Wednesday

Ligand Pharmaceuticals Inc. (NASDAQ: LGND) beat top-line, bottom-line and royalties estimates in its second-quarter report, and it boosted annual guidance in the process.

But one analyst sees limited opportunity for near-term growth.

The Rating

Roth Capital Partners analyst Scott Henry downgraded Ligand to Neutral but raised his price target from $172 to $250.

The Thesis

For the most part, Ligand’s business appears strong. The OmniAb platform has inspired stock growth, and Promacta and Kyprolis recorded results robust enough to merit 40- and 55-cent increases to respective 2019 and 2020 EPS forecasts.

“The company's business model of leveraging platform technologies for back end royalties is working well in the current strong market for biopharmaceuticals,” Henry wrote in a note. “Further, the risk profile is superior in the event of clinical or marketing failures. We consider LGND among the best managed companies that we cover.”

However, with the stock having nearly doubled in the last year, current valuation levels render shares “increasingly speculative.” Roth confirmed it's finished expanding the Ligand multiple at 40 times.

Price Action

At time of publication, Ligand traded down 3 percent at a rate of $239.18.

Related Links:

Mizuho Upgrades Audentes On Promising Gene Therapy Candidate

4 Reasons Behind Stifel's Neurocrine Bull Thesis

Latest Ratings for LGND

DateFirmActionFromTo
Sep 2018H.C. WainwrightMaintainsBuyBuy
Aug 2018Goldman SachsInitiates Coverage OnNeutral
Aug 2018Roth CapitalDowngradesBuyNeutral

View More Analyst Ratings for LGND
View the Latest Analyst Ratings

Posted-In: ROTH Capital Partners scott henryAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (LGND)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NKEOppenheimerUpgrades0.0
SBEvercore ISI GroupUpgrades4.5
PTIRBC CapitalUpgrades0.0
GPSJP MorganDowngrades24.0
GIIIB. Riley FBRUpgrades47.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Wearable Tech ETF Shifts Strategy To Virtual Reality

KeyBanc's Bullish Thesis On Federal Signal Played Out As Expected