Morningstar labels Telix Pharmaceuticals as overvalued
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The news: Morningstar has lifted its fair value estimate on Telix Pharmaceuticals but says the stock is overvalued a day after the company upgraded its full-year revenue guidance.
The numbers: The research house lifted its fair value estimate on Telix by 6% to $18 a share.
Telix shares on Tuesday closed at $24.98 after the dual-listed company reported total unaudited revenue of $783 million for the 2024 financial year, exceeding guidance of $745 million to $776 million.
The context: Morningstar analyst Shane Ponraj said the market was too optimistic about the sales of Telix’s prostate cancer imaging agent Illuccix, which is now in its second full year of commercial sales.
What they said: “We estimate average selling prices of Illuccix will fall 15% when the transitional pass-through payment status it received for being a new and innovative technology expires in June 2025,” he said in a note.
The source: Morningstar research
