Is Lantheus (LNTH) Stock a Buy After Truist's Upgrade and Strong Fundamentals?

The recent upgrade of Lantheus (LNTH) stock by Truist Securities to "Buy" from "Hold," coupled with a raised price target of $80, has reignited investor interest in the healthcare diagnostics company. This move, led by analyst Richard Newitter, reflects a bullish outlook on LNTH's potential for double-digit revenue and earnings per share (EPS) growth in the coming years according to reports. To assess whether this upgrade and the company's strong fundamentals justify a "Buy" rating, we must evaluate LNTH through the lenses of value investing and growth investing, analyzing its financial metrics, market position, and future prospects.

Truist's Rationale: A Catalyst for Reevaluation

Truist's upgrade was driven by its confidence in Lantheus's ability to capitalize on its leadership in molecular imaging and diagnostic radiopharmaceuticals. The firm highlighted the company's strong profitability and operating margins that outperform most industry peers, despite mixed 2025 financial results and a 24.4% year-to-date decline in its stock price. The raised price target of $80-a 31.15% increase from the previous $61-signals a significant shift in sentiment according to reports. This upgrade arrives at a critical juncture, as Lantheus navigates a volatile market and prepares for key regulatory milestones in 2026.

Value Investing Case: Undervaluation and Financial Health

From a value investing perspective, Lantheus appears attractively priced relative to its fundamentals. The company's forward P/E ratio of 11.17 is lower than 93% of its industry peers, while its Price/Free Cash Flow ratio ranks in the bottom 4% of competitors, suggesting it is undervalued by market standards according to analysis. Additionally, Lantheus's debt-to-free-cash-flow ratio of 1.37 indicates it could eliminate its debt in under 18 months using current cash flow, placing it in the top 10% of its sector for financial flexibility according to analysis.

Liquidity metrics further reinforce this case. The company maintains a Current Ratio of 2.67 and a Quick Ratio of 2.49, ensuring it can comfortably meet short-term obligations according to analysis. While its debt-to-equity ratio of 50.7% has risen due to recent acquisitions, including Life Molecular Imaging and Evergreen Theragnostics, its net debt to EBITDA ratio of -1.26 underscores a robust balance sheet according to analysis. With $382 million in cash and short-term investments, Lantheus has ample financial flexibility to fund operations and innovation according to financial data.

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Growth Investing Case: Revenue Momentum and Product Pipeline

For growth investors, Lantheus's revenue trajectory and product pipeline are compelling. Third-quarter 2025 revenue of $384 million-a 1.4% year-over-year increase-was driven by $240.6 million in PYLARIFY sales and $81.8 million in DEFINITY sales according to financial results. The company has also updated its full-year 2025 revenue guidance to $1.49 billion–$1.51 billion, reflecting confidence in its business outlook according to analysis.

Looking ahead, Lantheus is poised to benefit from upcoming FDA decisions on key product applications. These include a new formulation of piflufolastat F 18 PSMA PET imaging agent (decision expected March 6, 2026) and MK-6240, an F 18-labeled tau-targeted PET imaging agent (decision by August 13, 2026) according to company announcements. Analysts project these developments could unlock significant revenue streams, particularly in oncology and neurology diagnostics.

Balancing Risks: EPS Declines and Market Volatility

Critics may point to Lantheus's GAAP EPS decline of 77.1% in Q3 2025 ($0.41 vs. $1.79 in 2024) as a red flag according to financial reports. However, this drop is largely attributable to one-time costs from acquisitions and restructuring, as adjusted EPS fell only 25.3% to $1.27 according to financial analysis. On a trailing twelve-month basis, EPS remains at $2.45, down from $4.52 in 2024 but still above industry averages according to earnings data. The stock's 24.4% YTD decline may also present a buying opportunity, as its valuation metrics suggest the market has not fully priced in its long-term potential according to market analysis.

Conclusion: A Compelling Case for Value and Growth Investors

Lantheus (LNTH) stock appears to offer a rare combination of attractive valuations and robust growth prospects. Its strong financial health, undervalued multiples, and liquidity position make it a compelling value play, while its revenue momentum and product pipeline support its growth narrative. Truist's upgrade to "Buy" and the $80 price target-implying a 27.85% upside from current levels-align with these fundamentals.

For investors seeking exposure to the healthcare diagnostics sector, LNTH represents a strategic opportunity to capitalize on both near-term value and long-term innovation. However, as with any investment, monitoring the FDA decisions in 2026 and the company's ability to execute its integration of recent acquisitions will be critical.