BeiGene (BGNE – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David Li from Bank of America Securities reiterated a Hold rating on the stock and has a $163.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors affecting BeiGene’s recent performance and future projections. Primarily, the report indicates a mixed performance in monthly drug sales, with some drugs like tislelizumab showing modest month-over-month growth while others, particularly zanubrutinib, experienced a substantial decline. This uneven sales performance, coupled with the increasing competition in the Bruton’s tyrosine kinase (BTK) inhibitor market abroad, prompted a downward revision of long-term revenue forecasts for zanubrutinib, one of BeiGene’s key products.
Additionally, the report reflects changes in the financial risk profile of BeiGene, with an updated observed beta increasing from 0.99 to 1.20. This adjustment translates to a new weighted average cost of capital (WACC) of 12%, up from the previous 10.6%, indicating a higher risk and discount rate applied to future cash flows. Despite these challenges, the report acknowledges the company’s continued progress in its pipeline development, which underpins the rationale for maintaining a Neutral stance rather than downgrading the stock. The price objective revision to $163 from the previous $200 also reflects these new assessments.
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BeiGene (BGNE) Company Description:
BeiGene, Ltd.is a biopharmaceutical company. The company primarily focuses on developing molecularly targeted and immuno-oncology drugs for the treatment of cancer.
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