TD Cowen has adjusted its valuation of Halozyme Therapeutics, raising the firm's price target to $96 from $90 while maintaining a Buy recommendation on the stock. The revised target accompanies data that show Halozyme shares trading close to their 52-week high; InvestingPro figures note a high of $82.22 and a current quote of $80.48.
The upgrade follows Halozyme's fiscal 2025 results, which were released in line with expectations. Importantly, the company provided its royalty revenue mix for the first time in its 10-K filing, giving analysts greater clarity on recurring revenue streams.
Key financial metrics highlighted in TD Cowen's review include strong recent revenue expansion and healthy profitability. Halozyme recorded revenue growth of 31.19% over the last twelve months and reported a gross profit margin of 78.91% for the same period. Those figures contributed to TD Cowen updating its financial model.
Hytrulo was singled out as a particularly strong driver of royalty growth. The product's revenue rose 444% year-over-year, a performance that surpassed TD Cowen's prior assumptions and prompted the analyst to adjust forward projections.
Beyond the royalty disclosures, TD Cowen noted that Halozyme reaffirmed its 2026 guidance and that recent acquisitions played a role in the firm's updated outlook. The company expects to secure between one and three new ENHANZE deals in 2026, and TD Cowen projects these developments will double the number of pipeline products between 2025 and 2028.
While the analyst reaction centered on stronger royalty visibility and accelerated Hytrulo growth, Halozyme's latest quarterly results included an unexpected adjusted loss. The company reported a fourth-quarter adjusted loss of $0.24 per share, versus analyst expectations for a $1.90 profit. That shortfall was attributed to acquisition costs, which weighed on quarterly profitability despite robust top-line performance.
Revenue in the quarter rose sharply, increasing 52% to $451.8 million and surpassing the consensus estimate of $393.9 million. Analysts and investors have taken note of the divergence between strong revenue growth and the adjusted loss driven by acquisition-related expenses.
TD Cowen's target increase reflects a combination of newly available royalty mix detail, the outsized contribution from Hytrulo, reaffirmed guidance for 2026, and management commentary on prospective ENHANZE deals. The firm incorporated these factors into its updated model while also acknowledging recent acquisition activity.
Investors and market participants will likely watch future royalty disclosures, the trajectory of Hytrulo revenue, the realization of expected ENHANZE deals in 2026, and how acquisition costs affect near-term profitability as key variables shaping Halozyme's path forward.