Regeneron (REGN): Revisiting Valuation After a Short-Term Pullback and Longer-Term Shareholder Weakness

Market context and recent performance

Regeneron Pharmaceuticals (REGN) has been drifting lower in the past week, even after a solid run over the past 3 months. This has prompted investors to revisit whether the recent pullback offers a reasonable entry point.

See our latest analysis for Regeneron Pharmaceuticals.

The recent 7 day share price pullback sits against a still impressive 90 day share price return of 24.6 percent. However, a softer 1 year total shareholder return of negative 10.5 percent suggests momentum is cooling as investors reassess growth and risk.

If Regeneron has you rethinking your healthcare exposure, this is a good moment to scan other opportunities across healthcare stocks and see how they stack up.

With shares pulling back despite steady, mid single digit revenue and earnings growth, and the stock still trading below consensus targets yet above long term averages, investors may be wondering whether this is a fresh buying opportunity or if future growth is already priced in.

Most Popular Narrative Narrative: 9.9% Undervalued

With Regeneron Pharmaceuticals' last close at $692.58 versus a narrative fair value of roughly $768, the most followed view sees moderate upside still on the table.

The successful ramp of EYLEA HD, which is gaining physician adoption due to its clinical profile and durability, along with anticipated regulatory approvals for label enhancements (pending resolution of manufacturing site issues), could help offset patent/biosimilar pressures on legacy EYLEA, supporting stabilization and potential growth in core revenue and sustaining healthy margins over the next several years.

Read the complete narrative.

Curious how steady, mid single digit growth, margin resilience, and a richer future earnings multiple all fit together into that upside case? The full narrative unpacks the exact revenue path, margin shifts, and valuation re rating assumptions driving this fair value call, step by step.

Result: Fair Value of $768.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained EYLEA pressure and any stumble in key late stage trials could quickly undermine the upbeat growth and valuation narrative.

Find out about the key risks to this Regeneron Pharmaceuticals narrative.

Build Your Own Regeneron Pharmaceuticals Narrative

If the current view does not quite match your own thinking, dive into the numbers yourself and build a custom narrative in minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Regeneron Pharmaceuticals.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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