XOMA (XOMA) Stock Forecast & Price Target

XOMA Royalty Corp is projected to experience significant revenue growth, with royalty-based income expected to increase by over 20% annually through 2026, driven by commercial sales of key products like Vabysmo alongside new launches such as Ojemda and Miplyffa. The company's total income surged to $28.5 million in 2024, a notable increase from $4.8 million in 2023, attributable to the rise in income from purchased receivables and customer contracts. Additionally, XOMA's strategic expansion of its royalty asset base through acquisitions and internal growth is forecasted to yield revenues of $49 million in 2026, reflecting a 36% increase from the previous year, alongside expectations of continued growth from earlier-stage assets and milestone payments.

XOMA Royalty Corp has demonstrated significant revenue and net earnings variability, which is attributable to the unpredictable nature of the international market for its biotechnology products. Additionally, potential adverse economic conditions, changes in governmental policies, and the risk of failed clinical trials could severely hamper the company's operational capabilities and access to necessary funding. Furthermore, the recent downturn in stock performance following pandemic highs and the potential for significant volatility tied to executive turnover and market dynamics contribute to a negative outlook for XOMA's stock.