Halozyme’s Strategic Positioning and Market Potential Drive Buy Rating

Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on Halozyme (HALO – Research Report) and keeping the price target at $72.00.

Mitchell Kapoor has given his Buy rating due to a combination of factors that highlight Halozyme’s strategic advantages and market potential. The recent approval of the subcutaneous version of Opdivo in the European Union, which utilizes Halozyme’s ENHANZE technology, is a significant milestone. This approval allows for faster and easier administration of the drug, potentially increasing its market share in the PD-1 inhibitor space and providing a competitive edge against Merck’s Keytruda.
Furthermore, Kapoor’s valuation analysis, employing a discounted cash flow model with a 9% discount rate and a 1% terminal growth rate, estimates Halozyme’s firm value at $9.2 billion. With a 12-month price target set at $72 per share, Kapoor’s optimism is tempered by potential risks, including commercial challenges with ENHANZE, clinical data uncertainties, partnership dynamics with Janssen, and long-term dilution risks. Despite these risks, the strategic positioning and recent achievements underpin the Buy rating.

In another report released on May 15, Evercore ISI also reiterated a Buy rating on the stock with a $55.00 price target.