Buy Rating Affirmed for Legend Biotech Amidst Anticipated Growth and Expanded Carvykti Use

J.P. Morgan analyst Jessica Fye has maintained their bullish stance on LEGN stock, giving a Buy rating yesterday.

Jessica Fye has given her Buy rating due to a combination of factors influencing Legend Biotech’s potential for growth. Despite a lower-than-expected revenue for Carvykti in the first quarter of 2024, which did not meet both J.P. Morgan’s estimates and the consensus, the company’s management anticipates increased revenue in the latter half of the year. This optimism is based on expectations of improved manufacturing capabilities and an expansion of Carvykti’s label into second-line treatment and beyond, which could significantly widen its market scope.
Furthermore, the recent approval of Carvykti for second-line use is expected to drive demand, which is believed to already surpass supply. Jessica Fye projects that this dynamic, along with the company’s potential to achieve strong top-line growth, justifies a Buy rating. The overall outlook suggests that, despite the initial shortfall in revenue, the company is positioned for robust growth, validating the positive investment stance.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $94.00 price target.

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Legend Biotech (LEGN) Company Description:

Legend Biotech Corp is a clinical-stage biopharmaceutical company. It is engaged in the discovery and development of novel cell therapies for oncology and other indications. The firm’s lead product candidate, LCAR-B38M/JNJ-4528, is a chimeric antigen receptor, or CAR, T cell therapy is for the treatment of multiple myeloma. Its other pipeline products include LB1910, LB1909, LB1903, and others. Geographically, the company generates a majority of its revenue from North America.