The average target price of BHVN is 53 and suggests 229% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 75.0. This translates into 362% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 21.0. This suggests 29% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Biohaven Ltd. is a clinical-stage biopharmaceutical company. The Company focuses on development of therapies for neurological and immunoscience diseases that can change current treatment paradigms.

Biohaven Ltd.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

BHVN reported revenue of USD 0mn in the last 12 months, down 0% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY24 to USD -9.56. Market expects EPS to reach USD -8.89 in FY25.

The stock has been falling steadily in the past six months, losing 66% in total. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 58ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

In the last 12 months, the return on capital employed (RoCE) declined to -236.1%, below the peers. 

Biohaven Ltd. reported a return on equity (RoE) of -258.5% in the last 12 months, down from -84.4% in FY23. The market consensus projects an RoE of -162.4% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -182.8% in the last 12 months, a decrease from -69.5% in FY23. The market analysts predict that RoA will be -135.4% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -7.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

BHVN boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, BHVN is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, BHVN is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA. 

Biohaven Ltd.

$ 16.25

2

Biohaven Ltd.

$ 16.25

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 16.25

About

About

About

About