Rebecca Liang, an analyst from Bernstein, maintained the Hold rating on BeiGene (BGNE – Research Report). The associated price target is $196.00.
Rebecca Liang’s rating is based on a nuanced view of BeiGene’s recent financial performance and market dynamics. While BeiGene’s zanubrutinib has demonstrated commendable growth, it has encountered challenges in expanding its profit margins. The company’s revenue growth was solid at 74% year-over-year, indicating robust product sales, but it fell short of consensus expectations. The cost of goods sold (COGS) and selling, general, and administrative (SG&A) expenses have shown a concerning uptrend, indicating potential inefficiencies or increased investment in these areas. Additionally, despite zanubrutinib’s increased sales mix contributing to profitability, the margin improvement from this product alone appears to be plateauing.
Moreover, BeiGene’s net loss for the quarter was substantially higher than consensus estimates, which could signal underlying issues in operational execution. Research and Development (R&D) expenses reached a historical peak, suggesting aggressive investment in future growth but also contributing to current losses. On a positive note, zanubrutinib continues to capture market share in the U.S. BTK market, which is a testament to its competitive strength. However, the rate of incremental growth is decelerating, and while sales in China have rebounded, the overall picture presents a mix of promising product performance counterbalanced by financial and operational headwinds, leading to a Hold rating.
According to TipRanks, Liang is an analyst with an average return of -30.5% and a 0.00% success rate.
In another report released on February 19, Bank of America Securities also reiterated a Hold rating on the stock with a $163.00 price target.
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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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