JonesResearch has adjusted its price target for Lantheus (LNTH, Financial), reducing it from $134 to $120 while maintaining a Buy rating. This change follows the company's first-quarter report, which highlighted several challenges. Specifically, Lantheus' product, Pylarify, is under competitive pressure, leading to a slight 0.5% year-over-year decline in net sales. Additionally, the company is undergoing a business reorganization and has lowered its earnings guidance for fiscal 2025, contributing to the stock's downward pressure.
The firm expresses concerns about the immediate impact of potential new competition in the PSMA-PET market and the likelihood of increased operational costs due to recent acquisitions. Despite these short-term hurdles, JonesResearch remains optimistic about Lantheus' long-term outlook. It sees strong potential in the company's radiopharmaceutical pipeline and anticipates better execution and margin improvements once the current acquisitions and divestitures are finalized.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Lantheus Holdings Inc (LNTH, Financial) is $132.15 with a high estimate of $166.00 and a low estimate of $110.00. The average target implies an upside of 66.65% from the current price of $79.30. More detailed estimate data can be found on the Lantheus Holdings Inc (LNTH) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Lantheus Holdings Inc's (LNTH, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lantheus Holdings Inc (LNTH, Financial) in one year is $117.60, suggesting a upside of 48.3% from the current price of $79.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lantheus Holdings Inc (LNTH) Summary page.
LNTH Key Business Developments
Release Date: May 07, 2025
- Consolidated Net Revenue: $372.8 million, an increase of 0.8% year-over-year.
- PYLARIFY Sales: $257.7 million, flat compared to the prior year.
- Precision Diagnostic Revenue: $104.4 million, flat year-over-year.
- DEFINITY Sales: $79.2 million, a 3.5% increase.
- TechneLite Revenue: $19.7 million, a decrease of 9.2% due to a brief supply issue.
- Gross Profit Margin: 67%, a decrease of 180 basis points.
- Operating Expenses: 28.3% of net revenue, 147 basis points higher than the prior year.
- Operating Profit: $144.3 million, a decrease of 7.1%.
- GAAP Net Income: $72.9 million.
- Adjusted Net Income: $109.5 million, a decrease of 7.5%.
- GAAP Diluted EPS: $1.02.
- Adjusted Diluted EPS: $1.53, a decrease of 9.5%.
- Operating Cash Flow: $107.6 million, down $19.7 million from the previous year.
- Free Cash Flow: $98.8 million, $20.1 million lower year-over-year.
- Cash and Cash Equivalents: $938.5 million at the end of Q1.
- Full-Year 2025 Revenue Guidance: $1.55 billion to $1.585 billion.
- Adjusted EPS Guidance for 2025: $6.60 to $6.70.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lantheus Holdings Inc (LNTH, Financial) announced two strategic acquisitions, Evergreen Theragnostics and Life Molecular Imaging, to enhance their radiopharmaceutical leadership and sustain long-term growth.
- The company plans to divest its SPECT business to SHINE Technologies, streamlining operations and focusing on PET radiodiagnostics and radiotherapeutic agents.
- PYLARIFY sales reached $258 million in the first quarter, with strategic partnerships securing the majority of revenue.
- The company has a strong cash position and disciplined capital allocation strategy, enabling continued investment in capabilities and pipeline expansion.
- Lantheus Holdings Inc (LNTH) anticipates significant growth in the Alzheimer's radiodiagnostic market, with a potential total addressable market of $1.5 billion by the end of the decade.
Negative Points
- PYLARIFY experienced a low single-digit decline in net price, and competitive pressures are expected to continue impacting smaller non-contracted sites.
- Gross profit margin decreased by 180 basis points due to strategic partnership contracting initiatives and a moly supply shortage.
- Operating expenses increased, reflecting investments in growth and efficiency initiatives, impacting the company's profitability.
- The divestiture of the SPECT business, while strategic, will result in the loss of a stable revenue contributor.
- The company's guidance for adjusted EPS was lowered due to updated expectations for PYLARIFY performance and increased R&D investments.
