Legend Biotech (NasdaqGS:LEGN): Reassessing Valuation After New Long-Term CARVYKTI Data from CARTITUDE Studies
Legend Biotech (LEGN) just released fresh long term data on its flagship CAR T therapy CARVYKTI from the CARTITUDE program in hard to treat multiple myeloma, clarifying its profile for durability, safety, and potential future revenue.
See our latest analysis for Legend Biotech.
Despite today’s positive CARVYKTI update, Legend Biotech’s 30 day share price return of minus 21.71 percent and one year total shareholder return of minus 35.68 percent show sentiment has been weak, but the 3.01 percent daily gain hints that momentum could be stabilizing as investors reassess long term potential.
If this kind of late stage biotech story interests you, it is worth exploring other potential winners in healthcare stocks to see how Legend compares with the broader health care opportunity set.
With shares down sharply despite double digit revenue growth and a blockbuster CAR T launch partner, is Legend Biotech now trading at a steep discount to its long term potential, or is the market already pricing in future growth?
Most Popular Narrative Narrative: 70.6% Undervalued
Compared with Legend Biotech’s last close at $21.92, the most closely followed narrative implies a far higher long term fair value, hinging on steep revenue and margin expansion.
Long term growth remains robust in the base case, with the target price reduction framed as a fine tuning of the model rather than a shift in conviction.
Successful execution on pivotal programs could support additional upside to the new target, particularly if timelines or uptake trends outperform conservative projections.
Want to see how rapid top line growth, rising margins, and a richer earnings multiple all mesh together into that valuation jump? The detailed narrative reveals the full playbook.
Result: Fair Value of $74.51 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained dependence on CARVYKTI and rising competition from next generation therapies could quickly undermine the upbeat growth and valuation narrative.
Find out about the key risks to this Legend Biotech narrative.
Build Your Own Legend Biotech Narrative
If you see the story differently and want to stress test the assumptions with your own inputs, you can build a personalized view in minutes, Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Legend Biotech.
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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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