[Click e-Stock] "Profitability Improving" Celltrion Sees Successive Target Price Upgrades by Securities Firms

There is a continued trend in the securities industry of raising target prices for Celltrion.

On January 5, Yuanta Securities raised its target price for Celltrion from 220,000 won to 250,000 won, citing improved profitability driven by the growth of new biosimilars.

Ha Hyunsoo, a researcher at Yuanta Securities, stated, "Starting with the launch of Stekima (a Stelara biosimilar) in Europe at the end of 2024, a total of five new biosimilar products will be released in the US or European markets by 2025," adding, "Substantial sales contributions are expected to begin in 2026."

He also explained, "The New Jersey plant acquired from Eli Lilly has secured contract manufacturing orders worth approximately 678.7 billion won through 2029. Annual CMO sales are expected to exceed 200 billion won," and added, "With expansion, capacity will increase to 132,000 liters, making additional contract wins likely."

Previously, Celltrion announced that its fourth-quarter sales for last year are expected to reach 1.2839 trillion won, with operating profit of 472.2 billion won. This represents increases of more than 20% and 140%, respectively, compared to the previous year. The cost of sales ratio for the fourth quarter is also estimated to exceed 36%.

Researcher Ha said, "We maintain a buy recommendation and raise the target price by 13.6% to 250,000 won," explaining, "This is due to the upward revision of earnings forecasts resulting from improved profitability, as well as the application of 2026 EBITDA." He added, "After the healthcare merger, the elevated cost ratio did not improve quickly, leading to sluggish stock performance, but as the proportion of new biosimilars increases, profitability and share price are expected to rise."

On the same day, Daol Investment & Securities also raised its target price for Celltrion from 230,000 won to 240,000 won. Lee Jisoo, a researcher at Daol Investment & Securities, noted that fourth-quarter results last year exceeded market expectations, stating, "The impact of new product launches is expected to continue in 2026. Top-line growth is also anticipated with CMO sales from Teva and Eli Lilly."

Last week, IBK Investment & Securities, Eugene Investment & Securities, and NH Investment & Securities also raised their target prices for Celltrion to 250,000 won per share. Korea Investment & Securities set a new target of 240,000 won per share, while Samsung Securities presented a target of 230,000 won per share.

Jung Isu, a researcher at IBK Investment & Securities, commented, "Despite continued quarterly earnings growth throughout 2025, the annual market capitalization increase was limited to 3%, meaning the stock price did not fully reflect performance," adding, "In 2026, as the gap between market expectations and company guidance narrows, a revaluation of valuation based on profit growth is expected to begin in earnest."