Mitchell Kapoor, an analyst from H.C. Wainwright, reiterated the Buy rating on Halozyme. The associated price target remains the same with $90.00.
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Mitchell Kapoor has given his Buy rating due to a combination of factors that highlight the potential growth and stability of Halozyme’s financial prospects. The recent success of the MajesTEC-3 trial, which pairs Johnson & Johnson’s DARZALEX Faspro with TECVAYLI, has demonstrated significant improvements in progression-free survival (PFS) and overall survival (OS) compared to existing treatments. This outcome not only strengthens the evidence for DARZALEX-based regimens but also enhances Halozyme’s royalty base, as DARZALEX Faspro is powered by Halozyme’s ENHANZE technology.
Furthermore, Kapoor’s valuation analysis, using a discounted cash flow model with a 9% discount rate and a 2% terminal growth rate, estimates Halozyme’s firm value at $10.5 billion. This analysis supports a 12-month price target of $90 per share, considering the company’s debt and shares outstanding. Despite potential risks such as commercial challenges with ENHANZE and partnership dependencies, the positive trial results and strong financial projections underpin Kapoor’s optimistic Buy rating for Halozyme.
According to TipRanks, Kapoor is a 3-star analyst with an average return of 3.5% and a 43.81% success rate. Kapoor covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals, Halozyme, and Summit Therapeutics.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $79.00 price target.