Regeneron shares (NASDAQ: REGN) have already increased by around 25% since the beginning of September, but a JPMorgan analyst is confident that the stock will rise even further in the near future.
Regeneron shares could climb further to $850
Chris Schott advises investors to purchase Regeneron shares because they have a potential upside of $850. From here, the price objective corresponds to an additional 20% gain.
According to the analyst, the age-related macular degeneration medicine Eylea from Regeneron Pharmaceuticals will be the driving force behind the company’s stock price’s subsequent increase.
While we expect Eylea trends to be in focus given this quarter’s volatility and Vabysmo launch in 2022, we see these concerns as short-term and expect the launch of high-dose Eylea to represent a far more important driver for REGN shares.
Despite the fact that Eylea sales declined 3.0% year over year in the fourth quarter of 2022, he remains optimistic.
What other catalysts could help Regeneron shares?
While admitting that the Eczema industry is competitive, Schott believes that Regeneron’s Dupixent will help the company’s share price gain further upside in the future. He writes:
We see Dupixent as well-positioned for further volume gains with a dominant share in one of the least penetrated major immunology categories.
That therapy, the analyst added, will help the company expand biologic penetration in atopic dermatitis by over 100% in the next five years.
According to Schott’s analysis of preliminary data, the company’s prostate cancer treatment appears to be effective as well. Shares of Regeneron are currently trading at a discount to their average price-to-earnings ratio over the previous five years, which is around 15 times.