Update shared on29 Aug 2025
Fair value Increased 6.50%Ligand Pharmaceuticals' consensus price target was raised to $173.38, reflecting better-than-expected Q2 results, higher FY25 revenue and EPS guidance, growing investor confidence in its royalty portfolio, and successful strategic investments.
Analyst Commentary
- Better-than-expected Q2 results and an increase in FY25 guidance, indicating improved near-term financial performance.
- Upward revision to FY25 revenue growth projection to 29% year-over-year, now expected to reach $215M.
- Upward revision to adjusted EPS forecast for FY25, increasing to $6.85 from $5.72 last year.
- Growing investor confidence in Ligand’s current royalty portfolio and management's conservative guidance.
- Recognition of successful strategic moves, including the Ohtuvayre royalties investment, incubation and spin-offs of Pelthos and Palvella, and securing $20M-plus in annualized Qarziba royalties.
What's in the News
- Stifel, Citigroup, and BofA Securities have been added as co-lead underwriters for Ligand Pharmaceuticals' $400 million fixed-income offering.
- Ligand raised 2025 revenue guidance to $200 million–$225 million, up from the previous $180 million–$200 million outlook.
- Ligand’s partner Pelthos Therapeutics commercially launched ZELSUVMI (berdazimer) topical gel, triggering a $5 million milestone payment to Ligand; Ligand now owns 56% of Pelthos and is entitled to 13% royalties on ZELSUVMI sales plus up to $5 million in further milestones.
- Ligand Pharmaceuticals was added to several Russell growth and small/mid-cap indexes.
- The company held an analyst/investor day featuring presentations on strategy, investment activity, royalty portfolio, and long-term financial outlook.
Valuation Changes
Summary of Valuation Changes for Ligand Pharmaceuticals
- The Consensus Analyst Price Target has risen slightly from $167.25 to $173.38.
- The Future P/E for Ligand Pharmaceuticals has risen slightly from 36.84x to 38.19x.
- The Net Profit Margin for Ligand Pharmaceuticals remained effectively unchanged, at 36.78%.
Disclaimer
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