Regeneron Pharmaceuticals
REGN
$784.36
+1.59%
Regeneron Pharmaceuticals is a biotechnology company that discovers, develops, and commercializes therapies for eye disease, cardiovascular disease, cancer, and inflammation, with key products including Eylea, Dupixent, and Libtayo. As a market leader in ophthalmology and immunology, Regeneron leverages its proprietary VelociSuite technologies and strategic partnerships with Sanofi and Bayer to maintain a competitive edge. The current investor narrative centers on the recent Phase 3 trial failure for a cancer drug combination, which has raised concerns about pipeline growth, while the company's robust commercial portfolio and strong financials continue to support a long-term growth story.…
REGN
Regeneron Pharmaceuticals
$784.36
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REGN 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Regeneron Pharmaceuticals's 12-month outlook, with a consensus price target around $833.54 and implied upside of +6.3% versus the current price.
Average Target
$833.54
0 analysts
Implied Upside
+6.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$641 - $1030
Analyst target range
Regeneron is covered by 27 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.81 (where 1 is Strong Buy). The average price target is $833.54, implying an upside of 7.96% from the current price of $772.11. The target range spans from $641.00 (low) to $1,030.00 (high), indicating a wide dispersion in expectations. Recent ratings actions include upgrades from Benchmark (Hold to Buy) and a downgrade from Leerink Partners (Outperform to Market Perform), reflecting mixed sentiment. The high target suggests optimism about pipeline success, while the low target reflects concerns about competitive pressures and clinical setbacks.
Bulls vs Bears: REGN Investment Factors
Regeneron presents a mixed picture: strong commercial execution and financial health are offset by pipeline setbacks and valuation concerns. The bull case is supported by robust revenue growth, high margins, and a low forward P/E, while the bear case highlights the Phase 3 failure, revenue concentration, and premium valuation. Currently, the bull case has slightly stronger evidence given the company's proven products and attractive valuation relative to its own history. The key tension is whether the pipeline can deliver new growth drivers to offset potential erosion in Eylea and Dupixent, which will determine the stock's long-term trajectory.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 19.04% YoY to $3.605B, driven by Eylea and Dupixent. This robust growth outpaces the sector and supports the company's premium valuation.
- High Gross Margin: Gross margin stands at 85.35%, reflecting strong pricing power and efficient manufacturing. This is well above the industry average and provides a solid foundation for profitability.
- Undervalued on Forward P/E: Forward P/E of 12.85x is below the 5-year average of 20x, suggesting the market is pricing in conservative earnings growth. With EPS expected to grow, the stock appears undervalued relative to its history.
- Analyst Consensus Buy: 27 analysts rate REGN a 'Buy' with a mean rating of 1.81, and the average price target of $833.54 implies 7.96% upside. This indicates broad institutional confidence in the company's prospects.
Bearish
- Pipeline Setback: The Phase 3 trial failure for a key cancer drug combination on May 18, 2026, led to a sharp stock drop. This raises concerns about the company's ability to sustain long-term growth beyond its current portfolio.
- High Valuation vs Sector: Trailing P/E of 17.92x is above the sector average of 15x, and PEG ratio of 3.38 suggests the stock is expensive relative to its growth rate. This leaves limited margin for error.
- Revenue Concentration: Eylea and Dupixent account for a significant portion of revenue, making the company vulnerable to competition or loss of exclusivity. Any setback in these key products could materially impact earnings.
- Mixed Analyst Sentiment: Recent actions include a downgrade from Leerink Partners (Outperform to Market Perform), reflecting skepticism about pipeline prospects. The wide target range ($641-$1030) indicates uncertainty.
REGN Technical Analysis
Regeneron's stock has demonstrated a strong recovery from its 52-week low of $541.00, currently trading at $772.11, which is approximately 94% of its 52-week range (high of $821.11). The 1-year price change of +39.09% indicates a sustained uptrend, though the stock has experienced significant volatility, including a max drawdown of -26.05%. This positioning near the upper end of the range suggests positive momentum but also potential overextension, especially given the recent sharp rebound from the May lows.
Beta
0.19
0.19x market volatility
Max Drawdown
-26.1%
Largest decline past year
52-Week Range
$541-$821
Price range past year
Annual Return
+40.1%
Cumulative gain past year
| Period | REGN Return | S&P 500 |
|---|---|---|
| 1m | +18.3% | +2.4% |
| 3m | +9.7% | +4.6% |
| 6m | -0.1% | +11.7% |
| 1y | +40.1% | +21.4% |
| ytd | +1.0% | +13.4% |
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REGN Fundamental Analysis
Regeneron's revenue growth has been robust, with Q1 2026 revenue of $3.605 billion, up 19.04% year-over-year, driven by strong sales of Eylea and Dupixent. The company's gross margin remains exceptionally high at 85.35%, reflecting its efficient manufacturing and pricing power. Net income for Q1 2026 was $727 million, with a net margin of 20.17%, though this was lower than the previous quarter's 21.74% due to increased R&D spending. The company's profitability is solid, with operating margin of 24.95% and a return on equity of 14.41%, indicating effective capital allocation.
Quarterly Revenue
$3.6B
2026-03
Revenue YoY Growth
+19.0%
YoY Comparison
Gross Margin
81.4%
Latest Quarter
Free Cash Flow
$4.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is REGN Overvalued?
Given Regeneron's positive net income, the trailing P/E ratio of 17.92x is the primary valuation metric, with a forward P/E of 12.85x, implying the market expects significant earnings growth. The stock trades at a premium to the sector average P/E of 15x, but this is justified by its superior growth and profitability. Historically, the current P/E is below its 5-year average of 20x, suggesting the stock is undervalued relative to its own history, despite the recent rally.
PE
17.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 5x~28x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include high R&D spending that could pressure margins if revenue growth slows; Q1 2026 net margin fell to 20.2% from 26.7% a year ago. The company's reliance on Eylea and Dupixent for a large portion of revenue creates concentration risk, as any competitive threat or loss of exclusivity could significantly impact earnings. However, a strong balance sheet with low debt (D/E 0.087) and high liquidity (current ratio 4.13) provides a cushion against financial distress.