Ligand Is An Attractive Financial Growth Story With Pipeline Optionality, Says Deutsche Bank


In a research report sent to investors yesterday, Deutsche Bank analyst Gregg Gilbert initiated coverage on Ligand Pharmaceuticals (NASDAQ:LGND) with a Buy rating and a $74 price target, which represents a potential upside of 38% from where the stock is currently trading.

Gilbert noted, “We view Ligand as an increasingly attractive cash flow story based on strong revenue growth coupled with significant operating leverage and a low tax rate. The company’s diverse revenue base and extensive pipeline of owned and partnered products create a relatively unique investment opportunity within pharma/biotech, in our view.”

The analyst continued, “While business development remains a strategic priority, we expect the company to consider other routes of shareholder return as cash continues to accumulate. With ~$190mn of cash on hand post the recent convert offering, we would be disappointed if management did not deploy a significant portion in the next 6-12 months.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gregg Gilbert has a total average return of 25.3% and a 88.0% success rate. Gilbert is ranked #191 out of 3391 analysts.

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