Chart of the Day: Halozyme Therapeutics (HALO)
Keep an eye on Halozyme Therapeutics (HALO).
Last trading at $60.81, HALO appears poised to refill its bearish gap to around $64 in the near term. That initial target could be just the start, given a mix of bullish technicals and strong fundamentals.
Analyst Upgrade Boosts Sentiment
Helping the case, analysts at Morgan Stanley recently upgraded HALO to overweight, setting a price target of $75. They believe the company will benefit significantly from the passage of the One Big Beautiful Bill, which includes the ORPHAN Cures Act.
According to Save Rare Treatments, the ORPHAN Cures Act is:
“Bipartisan legislation that would maintain existing incentives and boost research into new treatments for the 30 million Americans currently suffering from one of more than 7,000 rare diseases. The bill would achieve this by amending the Inflation Reduction Act’s harmful orphan drug exclusion and incentivizing critical follow-on investment into rare disease drug development.”
Earnings Continue to Impress
HALO’s most recent quarter further strengthens the bullish outlook:
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EPS: $1.54, beating estimates by $0.31
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Revenue: $325.7 million, up 40.8% year-over-year, beating expectations by nearly $40 million
Dr. Helen Torley, President and CEO, stated:
“The strong results highlight the momentum and durability across our business, powered by high-margin royalty streams and increasing global demand for our industry-leading ENHANZE drug delivery technology. In the quarter, we completed a total of $303 million in share repurchases, including the $250 million program announced in May. Our outperformance and strong cash generation supports a balanced capital allocation strategy, including investing in growth through M&A and returning capital to shareholders.”
The Bottom Line
Between analyst upgrades, favorable legislation, and robust earnings growth, Halozyme Therapeutics is showing both technical and fundamental strength. A move to refill the $64 gap looks likely in the short term, with potential for further gains if momentum continues.
📊 Ian Cooper’s Take:
Ian Cooper, an experienced trader with more than two decades of market expertise, blends technical, fundamental, and news analysis to find high-probability trade setups like this one. His premium options strategies aim to help individual investors navigate market volatility and identify timely opportunities.