Last Update 18 Dec 25

Fair value Increased 1.68%

LNTH: Future Earnings Will Rebound As Organic Growth Visibility Strengthens

Analysts have modestly lifted their price target on Lantheus Holdings to $82.29 from $80.93, citing a slightly lower discount rate, an improved profit margin outlook, and a firmer future P/E multiple, even as revenue growth expectations moderate.

Analyst Commentary

Recent Street research on Lantheus reflects a more balanced stance, with the modest price target lift occurring alongside at least one high profile downgrade. The result is a mixed but still constructive view on the stock's medium term risk reward profile.

While the new target implies upside from current levels, analysts are increasingly focused on execution against growth initiatives and the durability of key product revenue streams, which will determine whether the shares can re rate back toward prior valuation peaks.

Bullish Takeaways

Bullish analysts highlight that even with trimmed growth assumptions, the stock trades at a discount to their revised future P/E, suggesting scope for multiple expansion if visibility on organic growth improves.
The improved profit margin outlook is seen as a key support for valuation, with analysts expecting operating leverage from cost discipline and product mix to offset some revenue headwinds.
Some view the recent underperformance and target cuts as having reset expectations, arguing that execution in core diagnostics and pipeline progress could drive a sentiment shift and a rerating.
The updated discount rate, now slightly lower, reflects a perception of reduced risk around the balance sheet and cash flow profile, which underpins the higher target price.

Bearish Takeaways

Bearish analysts emphasize modest risk to consensus sales, particularly around Pylarify pricing pressure and slower than expected adoption in certain therapeutic areas, which could cap near term revenue growth.
The downgrade from a major global bank underscores concerns that Lantheus needs clearer visibility on sustainable organic growth before the shares can meaningfully re rate.
Acquisitions and business mix changes have introduced more uncertainty into the long term growth algorithm, leading some to question the reliability of out year earnings forecasts that underpin current valuation.
With the share price having already de rated significantly year to date, some see the current risk reward as balanced rather than compelling, which limits appetite for aggressive multiple expansion in the absence of new catalysts.

What's in the News

CEO Brian Markison will retire effective December 31, 2025, with former CEO Mary Anne Heino returning as interim chief while the board conducts a search for a permanent successor (company announcement).
Lantheus modestly raised its 2025 revenue guidance to a range of $1.49 billion to $1.51 billion from $1.475 billion to $1.51 billion, signaling slightly stronger expected top line performance (company guidance).
A securities class action has been filed alleging that Lantheus understated Pylarify pricing and reimbursement risks and relied heavily on the product for revenue, with sharp share price declines following 2025 guidance cuts cited in the complaint (legal filing).
The company reported progress in its pipeline, with the FDA setting a March 29, 2026 PDUFA date for LNTH 2501, a Ga 68 edotreotide PET imaging kit for SSTR positive neuroendocrine tumors (FDA related company update).
The FDA accepted Lantheus’ NDA for MK 6240, a tau targeted PET imaging agent for Alzheimer’s disease, and assigned an August 13, 2026 PDUFA date after positive Phase 3 data on sensitivity and specificity (FDA related company update).
Lantheus and GE HealthCare entered an exclusive licensing deal for GE HealthCare to develop, manufacture, and commercialize PYLARIFY in Japan for prostate cancer diagnostics, with Lantheus eligible for upfront fees, milestones, and tiered royalties (company announcement).

Valuation Changes

Fair Value: Risen slightly to approximately $82.29 from about $80.93, reflecting a modest upward revision in intrinsic value estimates.
Discount Rate: Fallen slightly to roughly 7.99% from about 8.06%, implying a marginally lower perceived risk profile and cost of capital.
Revenue Growth: Fallen slightly to around 6.81% from about 7.09%, indicating somewhat more conservative top line expectations.
Net Profit Margin: Risen slightly to roughly 25.48% from about 25.29%, signaling a small improvement in expected profitability.
Future P/E: Risen slightly to about 13.12x from roughly 12.93x, suggesting a modestly higher anticipated valuation multiple on forward earnings.

Alzheimer's and prostate cancer imaging expansions, plus new product launches, are expected to drive strong revenue growth and diversify the company's portfolio.
Strategic acquisitions and industry tailwinds position the company for sustained margin improvement and growth across radiopharmaceutical and neuroimaging markets.
Heavy dependence on a single product amid intensifying competition, pricing pressure, and limited diversification threatens revenue growth and earnings stability despite ongoing acquisition efforts.

Catalysts

About Lantheus Holdings

Develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in diagnosis and treatment of heart, cancer, and other diseases worldwide.What are the underlying business or industry changes driving this perspective?

The expansion of Lantheus's Alzheimer's disease imaging franchise-including the recent FDA label expansion for Neuraceq and late-stage tau-targeted radiodiagnostic MK-6240-positions the company to capture accelerating demand driven by broader adoption of amyloid-targeted therapies and increased focus on early diagnosis. This is likely to drive strong revenue growth as the U.S. PET imaging market for Alzheimer's is expected to exceed $1.5 billion by 2030.
The development, anticipated approval, and launch of the new high-yield PYLARIFY formulation are expected to deliver meaningful gross margin improvement and restore revenue growth for the prostate cancer imaging franchise, by expanding supply, improving geographic access, and resetting reimbursement dynamics with potential 340B price resets and three years of transitional pass-through status.
Multiple new product launches within the next 18 months-including the new F-18 PSMA PET, MK-6240, OCTEVY, and PNT2003-are set to diversify the revenue base, mitigate concentration risk, and open additional growth channels in oncology and neuroendocrine tumor imaging, supporting both top-line and future earnings expansion.
Recent acquisitions (Evergreen and Life Molecular Imaging) enhance Lantheus's manufacturing capabilities, broaden its product portfolio, and provide an immediate and scalable entry into high-growth radiopharmaceutical and neuroimaging markets, which should support both revenue growth and longer-term operating margin improvements.
Long-term demand tailwinds from an aging population, increased incidence of chronic diseases, and the structural shift toward early diagnosis and personalized medicine underpin sustainable volume growth for Lantheus's radiopharmaceuticals in both core and emerging markets, positively impacting revenues and offering upside to valuation if the stock is currently discounted.

Lantheus Holdings Earnings and Revenue Growth

Lantheus Holdings Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming Lantheus Holdings's revenue will grow by 5.7% annually over the next 3 years.
Analysts assume that profit margins will increase from 17.8% today to 23.4% in 3 years time.
Analysts expect earnings to reach $419.8 million (and earnings per share of $5.75) by about September 2028, up from $271.0 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $472.3 million in earnings, and the most bearish expecting $259.8 million.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 16.8x on those 2028 earnings, up from 13.8x today. This future PE is lower than the current PE for the US Medical Equipment industry at 29.7x.
Analysts expect the number of shares outstanding to decline by 2.2% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 7.75%, as per the Simply Wall St company report.

Lantheus Holdings Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

Intensifying price competition in the PSMA PET imaging market, especially from F-18 competitors, has resulted in Lantheus accepting lower prices, renegotiating contracts, and walking away from certain volumes, leading to ongoing net price compression and posing a risk to revenue and net margins.
Continued over-reliance on PYLARIFY as the primary revenue driver, combined with signs of market share loss and the likelihood of flat or negative PYLARIFY growth in 2026, creates vulnerability to further competitive disruption or reimbursement changes, negatively impacting long-term earnings stability.
Slow growth within large institutional customers and failure to fully penetrate the broader, high-growth PET imaging market-where competitors are gaining-limits Lantheus' ability to offset pricing and contract pressures, constraining overall revenue growth prospects.
Strategic acquisitions and diversification efforts (e.g., Evergreen, LMI/Neuraceq) provide new growth drivers but are expected to deliver only low-single-digit EPS accretion in the near term, and integration/dilution risks remain, potentially weighing on aggregate net margin improvement and earnings growth.
Best-price resets, 340B program exposure, and future regulatory changes (e.g., TPT/ASP dynamics) create reimbursement headwinds that may further erode pricing power and profitability, especially if new entrants or competing modalities accelerate adoption, impacting both revenue and net margins.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of $89.5 for Lantheus Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $130.0, and the most bearish reporting a price target of just $63.0.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $1.8 billion, earnings will come to $419.8 million, and it would be trading on a PE ratio of 16.8x, assuming you use a discount rate of 7.8%.
Given the current share price of $55.07, the analyst price target of $89.5 is 38.5% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Analysts Weigh In on Lantheus Holdings Amid Pylarify Challenges and Lowered Growth Forecasts