Analyst Mitchell Kapoor of H.C. Wainwright reiterated a Buy rating on Halozyme (HALO – Research Report), retaining the price target of $72.00.
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Mitchell Kapoor has given his Buy rating due to a combination of factors surrounding Halozyme’s ongoing legal battle with Merck & Co. over patent infringement. Halozyme has filed a lawsuit against Merck, claiming that the company has used its technology without permission in the development of SC Keytruda. The outcome of this lawsuit is seen as a significant catalyst for Halozyme, as a favorable ruling could affirm the strength of its intellectual property and lead to substantial royalty revenues.
Additionally, Kapoor highlights that a positive legal decision could result in a multi-billion-dollar royalty stream for Halozyme, particularly from the sales of SC Keytruda. Given Keytruda’s significant revenue generation for Merck, even a modest royalty rate could translate into substantial financial gains for Halozyme. The potential for such a windfall is not currently reflected in Halozyme’s stock price, making it an attractive investment opportunity according to Kapoor’s analysis.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $73.00 price target.