Citigroup Boosts Lexicon Pharmaceuticals Price Target, Maintains 'Buy' Rating.

Citigroup has raised the price target for Lexicon Pharmaceuticals (LXRX) from $1.20 to $1.90, a 58.33% increase, and maintained its "Buy" rating. Analysts have consistently shown a positive sentiment for LXRX, with a consensus recommendation of "Outperform" and an average target price of $2.61, indicating a potential 129.96% upside from the current price.

July 02, 2025 - Citigroup has significantly elevated its price target for Lexicon Pharmaceuticals (LXRX) from $1.20 to $1.90, representing a substantial 58.33% increase. The financial institution has maintained its "Buy" rating, underscoring its positive outlook on the biopharmaceutical company.

The new price target reflects a consensus recommendation of "Outperform" among analysts, with an average target price of $2.61. This indicates a potential 129.96% upside from the current stock price, highlighting the optimism surrounding LXRX's future prospects.

Lexicon Pharmaceuticals has been making notable strides in its R&D efforts, particularly with its oral pilavapadin for diabetic peripheral neuropathy (DPN) pain, which represents a significant market opportunity. The company is set to meet with the FDA by early Q4 to discuss this asset, with pivotal studies for pilavapadin expected to commence by the end of 2025 or early 2026 [1].

Additionally, Lexicon Pharmaceuticals reported a strong financial performance in the second quarter of 2025, with earnings per share of $0.01, surpassing expectations of a $0.09 per share loss. The company's total revenue reached $28.9 million, primarily driven by licensing revenue from Novo Nordisk, which amounted to $27.5 million [2].

The company's CEO, Michael S. Exton, expressed pride in the team's execution of its R&D-focused strategy during the second quarter of 2025. He highlighted the progress made in various lead R&D programs, including pilavapadin, LX9851, and sotagliflozin, as well as ongoing partnership efforts and regulatory advances.

The financial results for the second quarter of 2025 showed a shift from a net loss in Q1 to net income in Q2, driven by licensing revenue. The company's operating expense guidance for the year has been lowered to a range of $105 million to $115 million, with R&D expenses projected to be in the range of $70 million to $75 million [2].

Citigroup's updated price target and positive recommendation reflect the market's growing confidence in Lexicon Pharmaceuticals' ability to capitalize on its pipeline of late-stage assets and strategic partnerships. The company's focus on non-opioid pain treatments and cardiometabolic indications positions it well in the evolving healthcare landscape.

References:

[1] https://www.investing.com/news/analyst-ratings/jefferies-raises-lexicon-pharmaceuticals-stock-price-target-to-085-93CH-4174153

[2] https://seekingalpha.com/news/4480175-lexicon-lowers-2025-operating-expense-guidance-to-105m-115m-as-r-and-d-pivot-advances