LEGN Should I Buy
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Legend Biotech Corp (LEGN) is a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. Despite recent price target reductions, the company's fundamentals, strong CAR-T therapy sales, and positive sentiment from analysts and the market suggest significant upside potential.
The MACD is positive at 0.752, indicating bullish momentum, while RSI at 65.628 is neutral. Moving averages are converging, suggesting a potential breakout. The stock is trading above the pivot level of 22.037, with resistance levels at 25.506 and 27.649, indicating room for upward movement.
Strong CAR-T therapy sales with Carvykti achieving profitability and treating over 10,000 patients.
Positive analyst sentiment with RBC Capital maintaining an 'Outperform' rating and a $62 price target.
Industry momentum driven by Eli Lilly's $7 billion acquisition of Kelonia Therapeutics, highlighting interest in CAR-T therapies.
Concerns about competition in the CAR-T therapy space, with analysts like Rothschild & Co Redburn downgrading the stock and lowering peak sales estimates.
Declining net income and EPS in the latest quarter, reflecting financial challenges.
In Q4 2025, revenue increased by 64.26% YoY to $306.38 million, showcasing strong growth. However, net income dropped by -217.24% YoY to -$30.82 million, and EPS fell by -214.29% YoY to -$0.08, indicating profitability challenges. Gross margin slightly declined to 59.7%.
Analysts are generally positive on the stock, with RBC Capital and Morgan Stanley maintaining 'Outperform' and 'Overweight' ratings, respectively, despite lowering price targets. Deutsche Bank sees favorable risk/reward at current levels, while Rothschild & Co Redburn downgraded the stock due to competition concerns.
