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Tarrytown, New York-based Regeneron Pharmaceuticals, Inc. (REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various serious medical conditions. Valued at a market cap of $76.6 billion, the company’s portfolio boasts nine marketed drugs - Eylea, Dupixent, Praluent, Kevzara, Libtayo, Evkeeza, Inmazeb Arcalyst, and Zaltrap.
The biotech company's shares have lagged behind the broader market over the past 52 weeks. Regeneron has declined 26.5% over this time frame, while the broader S&P 500 Index ($SPX) has soared 20.7%. Moreover, the stock is down 1.7% on a YTD basis, compared to SPX’s 2.2% gain during the same time frame.
Zooming in further, REGN has also significantly underperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal return over the past 52 weeks and a 6.4% gain on a YTD basis.
On Feb. 4, shares of REGN surged 4.5% after its Q4 earnings release as the company delivered better-than-expected Q4 EPS of $12.07 and revenues of $3.8 billion. Moreover, the top line advanced 10% year-over-year, while the bottom line grew 1.8% from the year-ago quarter. Strong growth in Libtayo sales and increased collaboration revenues from Sanofi aided the results but were somewhat offset by lower Eylea’s sales.
Additionally, Regeneron initiated a quarterly cash dividend program and declared a dividend of $0.88 per share, further bolstering investor confidence.
For the current fiscal year, ending in December 2025, analysts expect Regeneron’s EPS to decline nearly 7% year over year to $35.92. The company’s earnings surprise history is mixed. It topped the Wall Street estimates in three of the last four quarters while missing on another occasion.
Among the 26 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 19 “Strong Buys,” one “Moderate Buy,” five “Holds,” and one “Moderate Sell” rating.
On Feb. 5, BofA maintained an “Underperform” rating on REGN and raised its price target to $575.
As of writing, REGN is trading below the mean price target of $970.84. The Street-high price target of $1,250 suggests an upside potential of 78.5%.
