Analysts have slightly lowered their fair value estimate for Halozyme Therapeutics by $1 to $74.44. This reflects more moderate revenue growth expectations, even as recent price target increases highlight optimism around product expansion and guidance improvements.

Analyst Commentary

Recent Street research highlights both the optimism and ongoing concerns reflected in the revised estimates and ratings for Halozyme Therapeutics. The evolving analyst perspective reflects the company's financial performance, market opportunity, and emerging risks.

• Bullish analysts have raised their price targets for Halozyme, citing strong quarterly results fueled by global and indication expansion of ENHANZE partnered products.
• 2026 EBITDA is now projected to surpass $1 billion, which would be achieved a year ahead of earlier guidance. This indicates potential for accelerated earnings growth.
• Upward revisions to 2025 EPS guidance have been made, driven by successful execution in both expanding partnerships and implementing cost discipline.
• Progress on subcutaneous formulations and associated cost savings, compared to branded IV products, is viewed as a competitive advantage that supports the growth outlook.

• Despite positive EPS adjustments, some major analysts maintain a neutral stance in the short term. They point to uncertainty ahead of upcoming quarterly results.
• Exposure to Medicare Part B is lower than previously expected. However, ongoing changes in reimbursement landscapes could still impact global sales projections for ENHANZE products.
• The recent FDA approval of a competing subcutaneous oncology drug that uses a rival enzyme raises the risk of heightened competition and unresolved patent litigation.
• While price targets are rising, several analysts caution that robust valuation is increasingly tied to execution in legal proceedings and to the success of new product launches.

What's in the News

• Halozyme Therapeutics has raised its 2025 revenue guidance, now expecting total revenue between $1,300 to $1,375 million and royalty revenue between $850 to $880 million, reflecting an increase from previous estimates. (Key Developments)
• The company announced that CFO Nicole LaBrosse will continue in her role until a successor is hired or until March 30, 2026. After that date, she will depart for a new professional opportunity. An external search for her replacement is underway. (Key Developments)
• From July 1 to September 30, 2025, Halozyme repurchased 725,514 shares for $38.88 million. The company has now completed the buyback of over 11.1 million shares, totaling $592.37 million since February 2024. (Key Developments)

Valuation Changes

• The Fair Value Estimate has decreased slightly from $75.44 to $74.44, reflecting more modest growth assumptions in updated models.
• The Discount Rate has edged down from 7.17% to 7.16%, indicating a minor shift in perceived risk or cost of capital.
• The Revenue Growth Assumption has fallen significantly from 19.1% to 16.2%, pointing to more conservative expectations for medium-term sales expansion.
• The Net Profit Margin Estimate has decreased from 54.65% to 53.67%, suggesting slight downward revisions in anticipated profitability.
• The Future P/E Ratio has risen modestly from 8.01x to 8.22x, signaling a minor increase in expected future earnings multiples.