Morgan Stanley maintains Overweight on Legend Biotech, raises PT to $83 from $81.

Morgan Stanley maintains Overweight on Legend Biotech, raises PT to $83 from $81.

Morgan Stanley has upgraded its rating for Legend Biotech (NASDAQ:LEGN) to "Overweight" and raised its price target to $83 from $81, as reported by MarketBeat [1]. The upgrade reflects increased confidence in the biotechnology company's prospects, particularly its lead product candidate, LCAR-B38M, a chimeric antigen receptor for the treatment of multiple myeloma (MM).

The latest update from Morgan Stanley comes after Legend Biotech reported a quarterly adjusted loss of 68 cents per share for the quarter ended June 30, which was lower than the same quarter last year when the company reported EPS of -10 cents [2]. Despite the loss, revenue rose 36.7% to $255.06 million, surpassing analyst expectations of $228.99 million [2].

Analysts have shown varying levels of optimism towards Legend Biotech, with a consensus rating of "Buy" and an average price target of $73.33 [1]. Several other firms, including Cantor Fitzgerald, Truist Financial, Royal Bank of Canada, and UBS Group, have also issued positive ratings and price targets for the stock [1].

Legend Biotech's stock performance has been mixed, with the stock trading down $0.43 during mid-day trading on Monday, hitting $37.00 [1]. The stock's fifty-day moving average price is $37.25, and its 200-day moving average price is $35.18 [1]. The company has a one-year low of $27.34 and a one-year high of $59.62 [1].

Institutional investors have also shown interest in Legend Biotech, with several large investors increasing their holdings in the company's stock during the second quarter [1]. Creative Planning, Candriam S.C.A., PNC Financial Services Group Inc., Campbell & CO Investment Adviser LLC, and Mitsubishi UFJ Asset Management Co. Ltd. are among the investors that have boosted their positions in the company [1].

Despite the positive analyst ratings and institutional interest, Legend Biotech continues to face challenges, including negative earnings per share and a negative return on equity of 21.19% [1]. The company's revenue growth of 107.8% on a year-over-year basis indicates potential for future earnings improvement.

Morgan Stanley's upgrade to "Overweight" and the increased price target suggest that the firm believes Legend Biotech has strong potential for growth and that the current valuation may be undervaluing the company's prospects. However, investors should carefully consider the risks associated with the biotechnology sector and conduct thorough research before making investment decisions.

References:

[1] https://www.marketbeat.com/instant-alerts/legend-biotech-nasdaqlegn-raised-to-strong-buy-at-cantor-fitzgerald-2025-08-05/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U30X3:0-legend-biotech-corp-reports-results-for-the-quarter-ended-june-30-earnings-summary/