Stock Price & Analysis

Analysis and Insights

Earnings Release and Price Movement:

Legend Biotech (LEGN) is set to release its Q4 earnings on March 11, 2025, with expectations of an EPS of -$0.38 and revenue of $179M. The stock has shown positive movement today, with a pre-market increase of 1.35% and a regular market increase of 8.67%, trading at $36.98.

Technical Indicators:

The RSI for LEGN is 42.82, indicating it's not overbought. The MACD is slightly negative, suggesting bearish momentum, but today's price increase could signal a trend reversal.

Analyst Sentiment:

Analysts are bullish, with a Strong Buy rating from HC Wainwright & Co. and a Buy rating from Piper Sandler, citing high demand for Carvykti.

Conclusion:

LEGN shows upside potential, especially if earnings exceed expectations. However, caution is advised due to potential market volatility and risks.

Price Prediction for LEGN Stock in 2025

Based on the analysis of earnings expectations and analyst sentiment, here is the price prediction for LEGN stock in 2025:

1. Earnings-Driven Upside: If Legend Biotech beats its Q4 earnings estimates, the stock could rise to $42, driven by positive sentiment and improved revenue outlook.
2. Caution on Miss: If the company misses estimates, the stock may drop to $32, reflecting reduced investor confidence.

This prediction is supported by the current price of $35.595 and analyst price targets averaging $73, indicating potential for growth if earnings exceed expectations.

The S1 support level for LEGN Stock is $33.41 ,The R1 resistant level for LEGN Stock is $38.

As of the end of day on 2025-03-14, the price of LEGN Stock was $37.14.

The target price for LEGN Stock according to analyst rating is 82.69, with the highest price target at 94.00 and the lowest at 65.00. Analysts have a Strong Buy rating on LEGN Stock overall.

The market cap of LEGN is $6.8B.

Analysis and Insights

LEGN appears overvalued based on its current financials and valuation metrics. Here's the breakdown:

1. Valuation Metrics:

   • EV/EBITDA: 17.09, higher than biotech industry averages, indicating a premium valuation.
   • PS Ratio: 8.78, suggesting the market is pricing in significant future growth.
   • PB Ratio: 5.66, above historical norms for similar biotech firms.

2. Financial Performance:

   • Net Income: Consistently negative across all quarters in 2024, raising concerns about profitability.
   • Revenue Growth: Strong, with Q3 2024 revenue at $160M, up from $93.99M in Q1. However, this growth hasn't translated to positive earnings.

3. Analyst Sentiment:

   • Piper Sandler maintains a Buy rating but lowered Carvykti revenue forecasts, citing supply constraints. This could impact near-term profitability.

4. Market Reaction:

   • The stock is up 4.36% today, driven by positive sentiment ahead of its Q4 earnings release. However, this rally may be overextended given the lack of profitability.

Conclusion

LEGN's high valuation, negative earnings, and reliance on future growth make it appear overvalued. While its strong revenue growth and analyst optimism are positives, investors should exercise caution until profitability improves.

Legend Biotech Corporation is a clinical-stage biopharmaceutical company. The Company is engaged in the discovery and development of cell therapies for oncology and other indications. Its lead product candidate, ciltacabtagene autoleucel (cilta-cel), referred to as LCAR- B38M, is an autologous chimeric antigen receptor (CAR-T) cell therapy that targets the B-cell maturation antigen (BCMA), which is a highly expressed protein in several hematologic malignancies, including multiple myeloma (MM). In addition to cilta-cel, the Company has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, hepatocellular carcinoma, small cell lung cancer, and non-small cell lung cancer. It is also engaged in developing an allogeneic gamma delta CAR-T product candidate and an allogeneic CAR-NK product candidate targeting BCMA for MM.

Legend Biotech (LEGN) is expected to reach $120 by 2030, driven by strong demand for its CARVYKTI therapy and expanding partnerships in the biotech sector. The stock's growth will be supported by increasing supply chain efficiency and positive analyst sentiment.

LEGN has a total of 1800 employees.