Stifel starts coverage on Ligand Pharma with 'buy'

Stifel initiates coverage on drugmaker Ligand pharmaceuticals LGND.O with "buy" rating

Brokerage sets PT at $143, representing 37.7% upside to stock's last close

Says LGND acquired multiple experimental drugs from development-stage companies; adds co has more than 90 partnered commercial and development-stage programs for cancer, kidney disease, diabetes and other conditions

Acquired drug candidates offer solid and predictable double-digit growth, brokerage says

LGND is to launch its viral skin-infection treatment, Zelsuvmi, in mid-2025 after acquiring asset from bankruptcy; brokerage adds, "LGND holds one of the most diversified portfolios of royalty revenues"

Royalty revenue is income from drugs that LGND does not make or sell itself, but earns percentage from sale through licensing deals

Six of 6 brokerages rate stock "buy" or higher; their median PT is $143.5 - data compiled by LSEG

Up to last close, stock has fallen 3.1% YTD