JPMorgan sees another 20% upside in Regeneron shares: this is why

Shares of Regeneron Pharmaceuticals Inc (NASDAQ: REGN) have already gained about 25% since early September but a JPMorgan analyst is convinced the stock will continue to move up in the coming months.

Regeneron shares could climb further to $850

Chris Schott recommends that investors buy Regeneron shares as they have upside to $850. That price objective translates to another 20% gain from here.

The analyst expects Regeneron Pharmaceuticals’ Eylea drug for age-related macular degeneration to fuel the next leg up in its stock price.

He’s bullish even though Eylea sales were down 3.0% year-on-year in the fourth quarter of 2022.

What other catalysts could help Regeneron shares?

Schott agrees that Eczema is a crowded market but still expects Regeneron’s Dupixent to also help unlock more upside for its share price moving forward. His note reads:

That therapy, the analyst added, will help the company expand biologic penetration in atopic dermatitis by over 100% in the next five years.

Initial data for the company’s prostate cancer treatment looks promising as well, Schott concluded. At about 15 times, Regeneron shares are trading at a discount to their average price-to-earnings multiple over the past five years.