Regeneron, a pharmaceutical stock, is outperforming other S&P 500 companies this year. The stock is up 51% year-to-date and analysts think there's more growth ahead.
While popular COVID-19 bets such as Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) have taken center stage, one pharmaceutical company has quietly risen above all S&P 500 stocks: Regeneron (NASDAQ:REGN).
After Tuesday’s close, Regeneron is up around 51% year-to-date, overtaking NFLX’s 31.7% surge and AMZN’s 24.3% growth. Equity analysts see more upside potential for the stock.
REGN has been in a strong uptrend after recording a 2020 low of $328.13 at the end of January. After Tuesday’s close of $574.37, the stock has surged by more than 75%.
The stock’s stellar performance can be attributed to the development of the antibody cocktail against COVID-19 that could be available later this year. The treatment is scheduled to be tested on humans for the first time next month.
In a statement, Leonard S. Schleifer, M.D., Ph.D., president and chief executive of Regeneron said:
Our novel antibody cocktail, REGN-COV2, which is specifically-designed for both prevention and treatment, is expected to begin human studies in June and we are working in parallel to have large-scale quantities available by late summer.
The ability to mass-produce the drug is one of the reasons why investors are optimistic. The company said that it looks to produce 200,000 prophylactic doses each month. Already infected patients may need a more potent cocktail. The company said it could deliver 20,000 strong doses per month.
The United States remains the epicenter of the coronavirus pandemic with over 1.2 million cases. An approved prophylactic and treatment against COVID-19 can be a game-changer for Regeneron.
Although Regeneron has been on fire as of late, equity strategists believe the stock has more room to run. SVB Leerink, an investment bank specialized in the healthcare sector, upgraded its price target for REGN from $604 to $622. Also, Credit Suisse maintains its outperform rating on REGN and lifts its price target to $605.
But not all analysts are convinced that this top S&P 500 company can keep climbing. Citi downgraded the stock from buy to neutral. The stock has already tapped the company’s price target of $575.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com. The writer does not own Regeneron shares.
Last modified: September 26, 2020 6:49 PM