Oppenheimer Assigns Outperform Rating to Legend Biotech Shares

Equity analysts at Oppenheimer have initiated coverage on shares of Legend Biotech (NASDAQ: LEGN), assigning the stock an “outperform” rating and setting a price target of $75.00. This target indicates a potential upside of approximately 257.48% from the company’s previous closing price, suggesting strong growth prospects.

Several other financial institutions have also provided insights on Legend Biotech. On October 17, 2023, Johnson Rice established a price target of $60.00. The following month, Cantor Fitzgerald revised its price target from $75.00 to $74.00, maintaining an “overweight” rating. Similarly, Barclays adjusted its target from $94.00 to $90.00, also retaining an “overweight” rating. Contrastingly, Weiss Ratings reaffirmed a “sell (e+)” rating on December 29, 2023, while UBS Group reduced its price objective from $54.00 to $48.00 with a “buy” rating in a report dated December 8, 2023.

Overall, ten investment analysts have rated Legend Biotech as a Buy, one as a Hold, and one has issued a Sell rating. According to data from MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” with a target price of $67.80.

Recent Financial Performance

Legend Biotech recently reported its quarterly earnings on November 12, 2023. The company announced earnings per share (EPS) of (\$0.11), surpassing analysts’ expectations of (\$0.13) by $0.02. Despite this positive development, Legend Biotech continues to grapple with challenges, reflected in its negative net margin of 26.37% and return on equity of 24.47%. The reported revenue of $272.33 million fell short of the anticipated $277.91 million, though this figure represented a significant year-over-year increase of 70.0% compared to the same quarter last year, when the company posted an EPS of (\$0.34). Analysts forecast that Legend Biotech will report an EPS of (\$1.31) for the current year.

Institutional Investor Activity

Recent activity among institutional investors has shown a notable shift in stakes in Legend Biotech. For instance, Clearstead Advisors LLC increased its holdings by 76.5% in the third quarter, now owning 847 shares valued at approximately $28,000 after acquiring an additional 367 shares. Similarly, Parallel Advisors LLC raised its stake by 171.9%, owning 1,047 shares worth $34,000 following a purchase of 662 shares.

In another significant move, OFI Invest Asset Management grew its holdings by 102.6%, now possessing 1,228 shares valued at $40,000 after adding 622 shares to its portfolio. Furthermore, Hantz Financial Services Inc. increased its position by an impressive 913.0%, resulting in ownership of 2,097 shares worth $74,000. Lastly, Raymond James Financial Inc. acquired a new stake in the second quarter, estimated at around $78,000.

Institutional investors and hedge funds now hold 70.89% of Legend Biotech’s stock, reflecting a significant interest in the company’s future potential.

Headquartered in Somerset, New Jersey, Legend Biotech is a commercial-stage biopharmaceutical company focused on developing and commercializing innovative chimeric antigen receptor T-cell (CAR-T) therapies for oncology. The company collaborates strategically to enhance its reach, notably through a partnership with Janssen Biotech, a subsidiary of Johnson & Johnson. Its leading therapy, ciltacabtagene autoleucel (marketed as Carvykti), targets B-cell maturation antigen (BCMA) for treating relapsed or refractory multiple myeloma.

As analysts continue to evaluate Legend Biotech’s performance, the upcoming quarters will be critical in determining the trajectory of its stock and overall market position.