Regeneron Pharmaceuticals: A Mixed Bag Amid Market Gains
Company Overview and Market Performance
Tarrytown, New York-based Regeneron Pharmaceuticals, Inc. (REGN) is deeply involved in discovering, developing, and marketing medicines aimed at serious medical conditions. With a market cap of $76.6 billion, Regeneron offers a portfolio of nine marketed drugs, including Eylea, Dupixent, Praluent, Kevzara, Libtayo, Evkeeza, Inmazeb, Arcalyst, and Zaltrap.
However, over the past year, Regeneron’s stock has struggled compared to the broader market. The company’s shares fell 26.5% while the S&P 500 Index ($SPX) rose by 20.7% during the same period. Additionally, year-to-date (YTD) performance shows REGN down 1.7%, contrasted with SPX’s 2.2% gain.
Underwhelming Performance vs. Peers
Looking at a closer comparison, REGN has underperformed relative to the Health Care Select Sector SPDR Fund’s (XLV) YTD gain of 6.4% and its modest return over the last 52 weeks.
Quarterly Earnings Highlight Growth Despite Challenges
On February 4, shares of REGN jumped 4.5% following the release of its Q4 earnings report, which revealed an EPS of $12.07 and revenues of $3.8 billion, both exceeding expectations. This represented a 10% increase in revenue year-over-year and a 1.8% growth in EPS compared to the same quarter last year. Sales growth for Libtayo and expanding collaboration revenues from Sanofi contributed positively, but these gains were partly counterbalanced by decreasing sales for Eylea.
In a move to enhance investor confidence, Regeneron also announced a quarterly cash dividend program with a dividend of $0.88 per share.
Future Projections and Analyst Ratings
Looking ahead to the fiscal year ending December 2025, analysts forecast a nearly 7% decrease in Regeneron’s EPS to $35.92. The company’s earnings history has been mixed, beating Wall Street expectations in three of the past four quarters but falling short at one point.
Among the 26 analysts monitoring the stock, the overall consensus rating is a “Strong Buy.” This is supported by 19 “Strong Buys,” one “Moderate Buy,” five “Holds,” and one “Moderate Sell” rating.
Market Insights and Price Targets
On February 5, BofA retained an “Underperform” rating on REGN, though it did raise its price target to $575. Currently, REGN trades below the average price target of $970.84 set by analysts. Notably, the highest price target in the market is $1,250, suggesting a potential upside of 78.5%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are meant for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
