REGN is treading water over the past year when it comes to share price. Investors want to see upward movement, and we don’t quite have that. From $615 to $580, we are witnessing quite the opposite trend. Research showing a REGN antibiotic cocktail’s effectiveness in treating COVID-19 could provide some boost in the short term.
Some skeptics point to REGN’s current performance as being indicative of its overall financial health, not its portfolio of products. Given the capital-intensive nature of its industry, these kinds of statements shouldn’t be taken lightly. With research and development often consuming huge amounts of an annual budget just to stay competitive, any lagging in this area could have huge consequences for the company and its investors.
Much Ado About Nothing?
Optimists say that skepticism is overblown where Regeneron is concerned. Pointing to a solid portfolio of products as well as potential on the horizon, this line of thinking is on the verge of arguing that current valuations for Regeneron Pharmaceuticals represent a great discount for value-minded investors.
Recent Evidence of Rising Valuations
Analysts are watching Regeneron in July to see movement one way or the other. With a $636 value target from some analysts, this optimism would not only represent healthy gains but also the highest value for Regeneron in over a year. The growth and value argument always depends on a range of factors, most falling into the categories concerning a company’s ability to execute a strategy as well as general market conditions. That said, Regeneron could be at the beginning of a streak and investors should take note.
Timing isn’t always everything but, given the relatively short windows analysts are using, getting in sooner rather than later might be the best move – especially if gains only go some $20 above the annual peak.