History tells us that September can be a turbulent month for ASX 200 shares as the dust settles on earnings season results. On trend, the S&P/ASX 200 Index (ASX: XJO) has shed 1.4% already this month.
However, this can also be an opportunity to buy quality stocks at a good price after market sell-offs.
One that may fit the bill is Telix Pharmaceuticals Ltd (ASX: TLX).
The company is a commercial-stage biopharmaceutical company focused on the ongoing development of diagnostic and therapeutic ('theranostic') products using targeted radiation.
This process treats cancerous or diseased cells, an alternative approach to many cancer therapies, which also attack healthy tissue at the same time.
What happened in August?
This ASX 200 stock fell almost 30% in August alone and is down 50% in the last 6 months.
Much of this fall can be attributed to an issue with the United States Food and Drug Administration (FDA).
The FDA identified deficiencies relating to the Chemistry, Manufacturing, and Controls (CMC) package.
The company provided a statement on August 28, saying Telix believes these concerns are readily addressable and submission remediation will begin immediately.
In even better news, the Telix share price got a boost yesterday after the company announced it reached agreement with the FDA regarding resubmission of its New Drug Application (NDA) for its TLX101-CDx product.
Earnings look stable
Independent of this FDA concern, the company actually posted healthy results in its H1 2025 results.
The company reported:
- Group revenue up 63% YoY to $390.4M
- Precision Medicine revenue up ~30% YoY
- EBITDA up 24% YoY
- Group gross margin of 53%
- On track to deliver against FY 2025 revenue guidance of $770M – $800M
Managing Director and Group CEO, Dr. Christian Behrenbruch, commented on the result:
Telix continues to deliver strong revenue growth while building a foundation for the future. The first half of 2025 was a period of rapid transformation as we expanded our global manufacturing operations, invested in launching new products in new markets, and accelerated the development of our therapeutic pipeline.
Big upside for Telix
Following these results, broker Bell Potter reduced its price target to $23.00 (previously $30.00).
However, from its current share price of $13.82, this still indicates an upside of 66.42%.
Other brokers seem to have a similar outlook on this beaten-down ASX 200 stock.
TradingView has a 12-month price target of $27.62 (99% upside).
Online brokerage platform Selfwealth has an average target price of $27.64.
