JMP Securities analyst Jason Butler reiterated a Buy rating on Halozyme (HALO – Research Report) today and set a price target of $78.00.
Jason Butler has given his Buy rating due to a combination of factors surrounding Halozyme’s potential for significant financial gains. One of the primary reasons is the potential for royalties from Merck’s subcutaneous Keytruda, which may infringe on Halozyme’s patents. This situation could lead to substantial royalty payments for Halozyme if resolved favorably, as Merck is seeking regulatory approval for the product in major markets like the U.S. and Europe.
Butler also notes that Halozyme’s management is proactively seeking to resolve the patent issue through licensing agreements, which could further enhance the company’s revenue streams. The analyst sees this as a multi-hundred million dollar opportunity, with minimal downside risk since these potential royalties are not currently factored into the stock’s valuation. Additionally, the extensive coverage of Halozyme’s MDASE patents, which extend through 2034, provides a robust intellectual property position that could secure future earnings.
In another report released on February 20, Benchmark Co. also maintained a Buy rating on the stock with a $75.00 price target.