As J&J (JNJ) partner Ligand Pharma (LGND) held its Investor Day in New York City on Tuesday, Citi initiated its coverage with a Buy recommendation and a target price of $270, noting that the biotech’s valuation remains underappreciated despite its YTD rally.
Florida-based Ligand (LGND) has added more than 70% this year, which Citi analyst Yigal Nochomovitz attributed to the company’s recent profitability gains driven by its long-term investments in drugs such as Filspari, which it develops with Travere Therapeutics (TVTX).
“However, we believe current levels are still underappreciating LGND’s valuation as upcoming catalysts for partnered programs,” expected by the end of 2025 or 2026, including a potential label expansion for Filspari “could further rerate the stock,” Nochomovitz added.
Meanwhile, ahead of the investor day event, Ligand (LGND) unveiled its 2026 guidance, indicating $245M – $285M in total revenue and $8.00 – $9.00 of core adjusted earnings per diluted share compared to $259.2M and $4.69 in the consensus, respectively.
The company continues to expect its 2025 total core revenue and core adjusted earnings per diluted share to reach $225M – $235M and $7.40 – $7.65, respectively, and projects at least a 23% compound annual growth rate from long-term royalty receipts.