Ligand Pharmaceuticals Is A Low-Risk Way To Bet On Biopharma Growth: Analyst – Ligand Pharmaceuticals (NASDAQ:LGND)
Bank of America (BofA) Securities on Wednesday initiated coverage on Ligand Pharmaceuticals Inc (NASDAQ:LGND), citing the distinctive royalty firm offers compelling upside.
Ligand’s Differentiated Model
Ligand is a biopharmaceutical royalty aggregator that provides financing to biopharma developers while also licensing its portfolio technologies.
Backed by experienced management and an investment team with a proven track record, Ligand is positioned to meet its ambitious revenue and earnings growth targets.
The company offers investors exposure to biopharma growth opportunities with a comparatively lower risk profile.
Currently, 12 major commercial-stage assets provide the majority of the company’s royalty revenues, a portfolio that should continue to support the profit & loss near- to mid-term.
Analyst Jason Zemansky highlights Ligand’s portfolio of over 100 programs capable of offering additional revenues, as well as access to over $1 billion in deployable capital.
BofA initiated Ligand with a Buy rating and a price forecast of $244.
Ligand Pharmaceuticals reported fourth-quarter adjusted earnings of $2.02 per share, beating the consensus of $1.56.
Sales reached $59.7 million, better than the Wall Street estimate of $55.6 million.
The royalty aggregator reaffirmed its fiscal 2026 adjusted earnings of $8.00-$9.00 per share compared to the consensus of $8.29.
The company maintained fiscal 2026 sales guidance between $245 million and $285 million compared to the consensus of $265.7 million.
Ligand’s Valuation Remains Attractive
BofA on Wednesday wrote, “Ligand is also well-positioned for future success.”
The company’s margins are higher than traditional biopharma firms because it does not require the extensive infrastructure typically needed to discover, develop, and commercialize drugs or medical devices.
Ligand’s 5-year growth stands out from large-cap peers in the space, with pharma expected to grow at 5-year top- and bottom CAGRs of +5% and +12%, respectively, and large-cap biotech, +5% and +9%, respectively.
LGND Price Action: Ligand stock is up 4.30% at $221.42 at the last check on Wednesday, according to Benzinga Pro data.
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