Strong Business Model and Growth Potential Drive Buy Rating for Ligand Pharma

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Ligand Pharma today and set a price target of $231.00.

Joseph Pantginis has given his Buy rating due to a combination of factors that highlight Ligand Pharma’s strong business model and future growth potential. The company is well-positioned with approximately $1 billion in deployable capital, which has enabled it to review over 175 investments, sign 69 confidentiality agreements, and close 6 deals in 2025. This robust capital deployment strategy is expected to continue and expand with additional full-time employees joining the investment team.
Furthermore, Ligand’s royalty growth is anticipated to be driven by several key products, including Filspari, which has upcoming regulatory milestones, and Ohtuvayre, which is experiencing a strong launch under Merck’s management. The company’s reiterated guidance for 2025 and new guidance for 2026 underscore its confidence in sustained royalty growth, despite the inherent variability in contract revenue. These elements collectively contribute to Pantginis’s positive outlook on Ligand Pharma’s stock.

In another report released yesterday, Citi also initiated coverage with a Buy rating on the stock with a $270.00 price target.

Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LGND in relation to earlier this year.