LEGN Should I Buy
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Legend Biotech Corp (LEGN) is not a strong buy at this time for a beginner investor with a long-term focus. The stock is currently trading in a bearish technical trend, with no significant positive trading signals or catalysts to suggest an immediate upward movement. Additionally, the company's financial performance shows declining profitability despite revenue growth, and analysts have significantly lowered price targets due to competitive concerns. While there is potential for long-term growth, the current market conditions and lack of positive momentum make it a hold rather than a buy.
The technical indicators for LEGN are bearish. The MACD is below zero and negatively contracting, RSI is neutral at 38.47, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 17.171), with resistance levels at R1: 18.936 and R2: 19.481.
Analysts like Deutsche Bank and Oppenheimer see the current price as undervalued and believe market concerns are overblown. Carvykti's strong market potential and impressive survival data are noted.
Net income dropped significantly (-217.24% YoY) in Q4 2025, with EPS also declining (-214.29% YoY). Analysts have lowered price targets due to competition concerns and slower-than-expected uptake of Carvykti. Johnson & Johnson's portfolio adjustment may signal reduced confidence in biotech investments.
In Q4 2025, revenue increased to $306.4M (up 64.26% YoY), but net income dropped to -$30.8M (-217.24% YoY), and EPS fell to -$0.08 (-214.29% YoY). Gross margin slightly decreased to 59.7% (-1.11% YoY).
Mixed sentiment among analysts. RBC Capital, Morgan Stanley, and Deutsche Bank maintain positive outlooks with lower price targets, citing undervaluation and strong fundamentals. However, firms like Rothschild & Co and TD Cowen have downgraded the stock due to competition concerns and slower Carvykti adoption.
