LEGN Should I Buy
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Legend Biotech Corp (LEGN) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is facing significant competition concerns, declining analyst price targets, and mixed financial performance. While the technical indicators are neutral to slightly positive, there are no strong proprietary trading signals or positive catalysts to justify an immediate purchase.
The MACD is positively expanding with a histogram value of 0.224, indicating a slight bullish momentum. However, the RSI is neutral at 53.106, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R1: 18.347), suggesting limited upside in the short term.
Some analysts believe the stock is undervalued compared to peers and that competitive fears are overdone.
Carvykti's Q4 sales of $555M missed consensus estimates of $582M, raising concerns about demand and competition. Multiple analysts have downgraded the stock and significantly lowered price targets due to toxicity concerns, sluggish demand, and competition from bispecific-based therapies.
In Q3 2025, revenue increased by 69.99% YoY to $272.33M. However, net income dropped by 68.33% YoY to -$39.69M, and EPS decreased by 67.65% YoY to -0.11. Gross margin also declined by 11.81% YoY to 57.66%.
Analyst sentiment is mixed to negative. Recent downgrades from firms like Rothschild & Co Redburn and TD Cowen highlight concerns about competition and demand. However, some analysts, such as H.C. Wainwright and Oppenheimer, maintain a Buy rating, citing undervaluation and long-term potential.
