H.C. Wainwright analyst Mitchell Kapoor reiterated a Buy rating on Halozyme today and set a price target of $90.00.
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Mitchell Kapoor has given his Buy rating due to a combination of factors that highlight the strategic importance and demand for Halozyme’s ENHANZE platform. The recent collaboration with Merus to develop a subcutaneous EGFR bispecific antibody underscores the platform’s value in transforming intravenous drugs into more patient-friendly subcutaneous formulations. This partnership not only validates ENHANZE’s relevance in the biopharmaceutical landscape but also positions Halozyme to benefit from the growing trend of subcutaneous drug delivery, particularly in competitive therapeutic areas like oncology.
Furthermore, the Merus deal is expected to act as a catalyst for future partnerships, potentially increasing Halozyme’s royalty revenue. The strategic move by Merus to adopt a subcutaneous formulation demonstrates the platform’s enduring appeal and potential for differentiation in crowded markets. Kapoor’s analysis, which includes a DCF-based valuation, estimates a firm value of $10.7 billion and supports a 12-month price target of $90 per share, despite acknowledging risks such as commercial challenges and partnership dependencies.
In another report released on November 4, Citizens JMP also maintained a Buy rating on the stock with a $92.00 price target.