Stock of the day: Telix Pharmaceuticals
Telix Pharmaceuticals reports a significant profit increase, with first-half 2024 earnings of $29.7 million driven by improved margins and cost control
[AI generated]
This video was created on 23 August for IG audiences by ausbiz.
Stock of the day: Telix Pharmaceuticals (ASX:TLX)
Robust performance by Telix Pharmaceuticals
Telix Pharmaceuticals, a leading global biopharmaceutical company, reported a significant profit increase, posting $29.7 million for the first half of 2024 - an impressive turnaround from the $14.3 million loss in the same period last year.
The company attributed this growth to improved gross margins, which rose by 66% due to stabilised pricing for its prostate cancer imaging products and disciplined cost control measures. Telix has reaffirmed its full-year revenue guidance, projecting between $490 million and $510 million.
Valuation concerns and expert opinions
Despite the strong results, some analysts are cautious about Telix’s current valuation. Trading at 78 times earnings before the latest results, the stock appears expensive, especially when compared to a giant like Apple, which trades at 35 times earnings. Experts highlight the inherent risk and reward balance in biotech stocks like Telix.
While the growth potential is significant, driven by its unique market position and ongoing innovation, high valuations reflect years of anticipated growth, making the stock vulnerable to any setbacks.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
