Regeneron Pharmaceuticals, Inc.
REGNRegeneron Pharmaceuticals develops and commercializes innovative medicines for serious diseases in the pharmaceutical industry.
It is a leading biotechnology company renowned for its proprietary scientific platforms and a robust pipeline of antibody-based treatments.
Updated: February 19, 2026, 16:00 EST
Investment Opinion: Should I buy REGN Today?
Of course. Here is a professional analysis of Regeneron Pharmaceuticals (REGN) based on the information provided.
**Investment Analysis: Regeneron Pharmaceuticals (REGN)**
Summary: Regeneron presents a compelling case of strong operational performance and technical momentum, but this comes against a backdrop of a seemingly full valuation. The company is a financially robust leader with impressive profitability, yet its current stock price appears to anticipate much of this success.
Technical & Momentum Outlook: REGN is exhibiting powerful bullish momentum, significantly outperforming the market with surprisingly low volatility. While trading near its 52-week high suggests confidence, it also indicates that the most immediate gains from this momentum may have already been captured, pointing to potential near-term consolidation.
Fundamental Quality: The company's fundamentals are solid. Revenue growth is healthy, underpinned by an exceptionally strong gross profit margin north of 80%. Financially, Regeneron is in an enviable position with minimal debt and a large cash reserve, providing a strong buffer against sector-specific risks and flexibility for strategic investments.
Valuation & Risk Considerations: The primary concern is valuation. Key metrics like the EV/EBITDA ratio appear elevated, suggesting the stock is richly priced relative to its current earnings and cash flow. The stock's history of significant drawdowns, despite its low beta, highlights its vulnerability to company-specific news, a constant in the biopharma sector.
***
**Investment Recommendation**
Based on the analysis, a HOLD recommendation is warranted for existing investors. Regeneron is a high-quality company, but its premium valuation leaves little margin for error. New investors may find better entry points during market or sector-wide pullbacks. The strong fundamentals justify keeping the stock in a portfolio, but the current price does not present a compelling enough risk-reward profile for new capital.
*This analysis is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.*
REGN 12-Month Price Forecast
RockFlow Model Forecast: Three Scenarios for 2026
Based on a comprehensive analysis of Regeneron Pharmaceuticals (REGN), here is a 12-month outlook:
12-Month Outlook for REGN
Key Catalysts: The primary near-term driver will be the continued commercial execution of flagship drug Eylea, particularly with the successful launch of its high-dose formulation in the competitive wet-AMD market. Further upside could come from pipeline progress, specifically advancements in its earlier-stage oncology and immunology assets, and any potential new regulatory approvals or label expansions.
Potential Risks: The most significant risk remains pipeline setbacks or clinical trial failures, which could dampen long-term growth prospects beyond Eylea and Dupixent. The stock is also vulnerable to increased competition in its key therapeutic areas and potential pricing pressures, a constant sector-wide headwind. The current premium valuation leaves the stock susceptible to a de-rating if growth unexpectedly slows.
Target Price Range: While the provided data indicates no specific analyst target, the stock's position near 52-week highs and rich valuation metrics suggest a period of consolidation is likely. Investors should monitor for analyst consensus targets, which typically cluster around a range, to gauge market expectations more precisely. The path forward is highly dependent on the company translating its strong financial health and pipeline potential into tangible future earnings growth.
Wall Street Consensus
Most Wall Street analysts are optimistic about Regeneron Pharmaceuticals, Inc.'s 12-month outlook, with consensus target around $782.38, indicating expected upside potential.
Bulls vs Bears: REGN Investment Factors
Overall, REGN has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Strong Dupixent Performance: Blockbuster drug Dupixent shows robust growth and strong market demand.
- Pipeline and Regulatory Advances: Positive pipeline updates and Eylea HD approvals drive investor optimism.
- Recent Stock Outperformance: Stock gained 21.5% YTD, significantly outperforming the industry average.
- Analyst Confidence: Bernstein reiterates Outperform rating with $818 price target after Tessera deal.
Bearish
- Institutional Selling Pressure: New York State Common Retirement Fund trimmed its position by 1.9%.
- Past Performance Headwinds: Shares faced downward pressure over the past year and a half.
- Competitive Market Pressures: Pipeline successes must counter ongoing competitive and pricing pressures.
REGN Technical Analysis
REGN demonstrates strong positive momentum with significant outperformance against the broader market. The stock has delivered impressive gains across multiple timeframes while maintaining lower volatility than the overall market.
Over the past three months, REGN has surged 17.64%, substantially outperforming the market by 17.66%, while the recent one-month gain of 6.96% confirms continued upward momentum. The low beta of 0.413 indicates these substantial returns have been achieved with relatively muted volatility compared to market swings.
Currently trading at $793.53, REGN sits approximately 96.6% of the way toward its 52-week high of $821.11, positioning it near the upper end of its yearly range. While not technically overbought yet, the proximity to all-time highs coupled with the substantial recovery from the 52-week low suggests limited upside potential in the near term despite the strong momentum.
| Period | REGN Return | S&P 500 |
|---|---|---|
| 1m | +6.6% | +1.0% |
| 3m | +12.6% | +1.9% |
| 6m | +40.6% | +6.5% |
| 1y | +12.4% | +12.1% |
| ytd | +0.8% | +0.2% |
REGN Fundamental Analysis
Revenue & Profitability Regeneron demonstrates strong revenue growth with Q4 revenue increasing to $3.88 billion from $3.75 billion in Q3, alongside a robust gross profit margin of 84.9%. However, profitability metrics showed pressure with the net income ratio declining to 21.7% from 38.9% in Q3, primarily due to higher operating expenses including increased R&D spending.
Financial Health The company maintains excellent financial health, evidenced by a low debt-to-equity ratio of 8.7% and a strong current ratio of 4.13. With an interest coverage ratio exceeding 72 and substantial cash holdings, Regeneron faces minimal liquidity or solvency risks.
Operational Efficiency While Regeneron's return on equity was modest at 2.7%, operational efficiency metrics show room for improvement with low asset turnover of 0.096 and a lengthy cash conversion cycle of 481 days. The high days inventory outstanding (493 days) suggests potential inventory management inefficiencies in its biopharmaceutical operations.
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
RockFlow Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
Try Now & Get Tesla Stock RewardValuation Analysis: Is REGN Overvalued?
Valuation Level REGENERON PHARMACEUTICALS' current TTM P/E ratio of 18.62 and forward P/E of approximately 23.5 present a mixed picture. The forward P/E being higher than the trailing figure suggests expectations of moderated earnings growth. The significantly elevated EV/EBITDA of 65.80 and the negative PEG ratio, which is driven by a projected decline in earnings growth, indicate the stock appears richly valued based on forward earnings and cash flow generation prospects.
Peer Comparison A direct peer comparison is not feasible as industry average data is unavailable for the pharmaceutical/biotechnology sector. Consequently, the valuation assessment must rely solely on REGN's absolute metrics. Without industry benchmarks for P/E, Price-to-Book, or EV/EBITDA, it is challenging to contextualize whether these multiples represent a premium or discount relative to the broader competitive landscape.
Investment Risk Disclosure
Volatility Risk Analysis: REGN exhibits exceptionally low systematic risk with a Beta of 0.413, indicating its price is significantly less volatile than the broader market. However, investors should note the stock's substantial maximum one-year drawdown of -35.14%, suggesting it can still experience significant peak-to-trough declines independent of market movements. This disconnect highlights the stock's sensitivity to company-specific events despite its low beta.
Other Risks Analysis: The absence of meaningful short interest suggests a general market consensus on the stock's valuation or a lack of significant bearish catalysts at present. Nevertheless, investors should remain mindful of typical biopharma risks, including clinical trial outcomes, regulatory decisions, and patent expirations for key products that could impact liquidity and valuation irrespective of the neutral short positioning.
FAQs
Bullish. REGN is driven by strong momentum from Dupixent's performance and a promising pipeline, supported by positive analyst consensus and solid financial health. However, the stock is trading near its 52-week high and carries a rich valuation, presenting limited near-term upside. This stock is suitable for growth-oriented investors with a higher risk tolerance who are comfortable with biopharma volatility and focused on long-term potential.
Based on the provided data, Regeneron (REGN) stock currently appears overvalued.
The primary indicator is the negative PEG ratio of -0.56, which signals that the market price is high relative to its negative earnings growth projections. While the P/E ratio of 18.62 might seem reasonable, the elevated forward P/E of ~23.5 and a very high EV/EBITDA of 65.80 suggest investors are paying a significant premium for future earnings that are expected to decline. Compared to typical pharmaceutical benchmarks, a P/E in the low-to-mid teens is often considered standard, making REGN's multiples appear rich.
Key valuation metrics pointing to overvaluation include the negative PEG ratio, the high forward P/E, and the extremely high EV/EBITDA. The reasons behind this valuation are likely embedded growth expectations from its product pipeline, which are not yet reflected in its current profitability metrics that show pressure from rising R&D expenses. The stock's price seems to be factoring in substantial future success that may not be fully guaranteed.
Based on the provided information, here are the key risks of holding Regeneron (REGN) stock:
1. Product-Specific Event Risk: Despite low market volatility (Beta), the stock is susceptible to significant price declines from company-specific events like negative clinical trial results, regulatory decisions, or patent expirations for key drugs like Eylea. 2. Profitability Compression Risk: Recent financial results indicate pressure on net income margins due to rising operating expenses, particularly in R&D, which could threaten earnings growth if not offset by future revenue increases. 3. Valuation and Momentum Risk: The stock is trading near its 52-week high after a strong rally, suggesting limited near-term upside potential and increasing vulnerability to a momentum reversal or profit-taking. 4. Operational Inefficiency Risk: A lengthy cash conversion cycle and high days inventory outstanding point to potential inefficiencies in inventory management, which could tie up capital and impact operational performance.
Based on a comprehensive analysis of Regeneron's financial health, product portfolio, and market dynamics, here is a forecast for REGN stock through 2026.
My target price range for late 2026 is $950 to $1,150, with a base case of $1,050, reflecting a belief that execution on key drivers will outweigh the inherent risks. The primary growth drivers will be the global expansion and market share retention of high-dose Eylea and, more critically, the sustained blockbuster growth and label expansions of Dupixent into new indications like COPD. Key assumptions include successful pipeline progression, particularly in oncology, and the avoidance of major patent cliffs or unexpected drastic pricing pressures. This forecast is highly uncertain and contingent on clinical trial outcomes and the competitive landscape, which could significantly alter the trajectory.