In a report released yesterday, Faisal Khurshid from Leerink Partners reiterated a Hold rating on Galapagos, with a price target of $29.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Faisal Khurshid has given his Hold rating due to a combination of factors, primarily focusing on Galapagos’s current transitional phase. The company is experiencing significant management turnover and is in the process of divesting its CAR-T platform, which are critical moves that require careful execution. The new management team appears to be well-suited for these tasks, but their ability to successfully execute business development strategies remains to be seen.
Additionally, Galapagos has a substantial cash reserve of approximately €3.1 billion, which positions it well for potential business development and mergers and acquisitions. However, the timing and success of these strategic initiatives are uncertain, and the market is waiting for more concrete actions and results. The company’s focus on post-proof of concept stage companies indicates a strategic direction, but until these plans are more clearly executed, a Hold rating is deemed appropriate.