Rybrevant FASPRO Approval and ENHANZE Royalties Reset Halozyme’s Long-Term Growth Outlook, Supporting a Buy Rating and $90 Target

H.C. Wainwright analyst Mitchell Kapoor has reiterated their bullish stance on HALO stock, giving a Buy rating on December 9.

Mitchell Kapoor has given his Buy rating due to a combination of factors tied to Halozyme’s strengthening royalty outlook and newly derisked growth profile. The recent U.S. approval of Rybrevant FASPRO, the subcutaneous version of Janssen’s amivantamab utilizing Halozyme’s ENHANZE technology, materially enhances confidence in Halozyme’s medium- and long‑term revenue potential. Kapoor views this approval as a key catalyst that should enable Halozyme to reset its long‑term guidance upward, resolving the gap between repeatedly raised 2025 expectations and unchanged 2026+ targets. He argues that the market is still valuing HALO as if growth will stall, while the incremental royalty stream from the SC Rybrevant launch supports a view of continued acceleration instead of stagnation.
Furthermore, Kapoor highlights PALOMA‑3 data showing that the subcutaneous formulation outperforms the IV version not only in convenience but also in clinical outcomes, including better overall and progression‑free survival and markedly fewer administration-related reactions, with infusion time shrinking from hours to minutes. This favorable benefit‑risk and efficiency profile should drive rapid conversion to the SC product in the high‑value EGFR‑mutated non‑small cell lung cancer setting, supporting robust, high‑margin royalty volumes that make current consensus forecasts appear overly cautious. His discounted cash flow analysis, using a 9% discount rate and 2% terminal growth assumption, supports a firm value that translates to a $90 per‑share 12‑month price target even after accounting for Halozyme’s debt load. Although he acknowledges commercial, clinical, partnership, and dilution risks, Kapoor concludes that the risk‑reward remains attractive, justifying his reiterated Buy recommendation on Halozyme shares.

In another report released on December 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $71.00 price target.