Telix Pharmaceuticals Ltd (ASX: TLX) is one of the ASX shares with the most buy recommendations right now.
According to the recommendations collated by Commsec, the business is currently rated as a buy by 15 different analysts.
It's rare for a business to be positively rated by that many analysts, all of whom have a positive rating on the company.
Broker UBS describes Telix as an Australian-based biotechnology company that's engaged in the development and commercialisation of radiopharmaceuticals – drugs conjugated to molecules that are radioactive or will undergo radioactive decay. UBS said Illuccix is a kit for preparing a radiolabelled prostate cancer diagnostic. It also has a pipeline of potential products for diagnosis and treatment in oncology and rare diseases.
Let's take a look at why UBS likes the Telix share price
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Telix share price to double?
UBS currently has a buy rating on the ASX biotech share, with a price target of $31. A price target is where the expert thinks the share price could go in 12 months from the time of the investment call.
The price target implies a possible rise of 100% over the next year from where it is today.
The broker is forecasting that the company's financials could steadily improve in the coming years. In FY25, it's predicted to make US$795 million in revenue and US$4 million in net profit.
In FY26, the business is projected to generate US$991 million of revenue and US$64 million of net profit.
In FY27, its revenue could rise again to US$1.27 billion, and it could make US$159 million of net profit.
In FY28, UBS predicts revenue could increase to US$1.68 billion and net profit could increase to US$340 million.
In FY29, the revenue could rise again to US$2.1 billion, and net profit could grow to US$599 million.
In other words, UBS is suggesting that the company's revenue could climb by 167% between FY25 and FY29.
Latest commentary on the ASX biotech share
UBS recently wrote in a note its latest thoughts on the company's products, including the Gozellix TPT approval, changes in the market, and therefore the impacts on the Telix share price, with the following:
Gozellix was granted transitional pass through (TPT) status by the Center for Medicare and Medicaid Services (CMS) effective Oct 1st. We believe TPT should give Gozellix significant reimbursement advantage over lower priced competitor F-18 PET agents (Pylarify and Posluma). Additionally, Gozellix's longer shelf-life should also improve hospital experience, giving physicians more flexibility for scheduling. Therefore, we expect Gozellix to gain significant market share in 4Q25. We believe the FY25 guidance of $770-800M is achievable with the potential for upside revision if Gozellix is off to a strong launch in 4Q25.
The broker also talked about Illuccix and the company's profit margins:
Following Illuccix's transitional pass-through status expiration on Jun 30, 2025, a key debate emerges on whether Illuccix's 3Q25 would be impacted by the reduced average selling price of F-18 PET agents. While we expect some impact to Illuccix's revenue, our conversations with the mgmt and KOLs suggest that the impact may be limited: 1) Illuccix's differentiated clinical profile with fewer indeterminate bone lesions, 2) different pricing structure that TLX offers to larger and loyal customers vs. smaller customers, 3) price negotiation with Medicare Advantage patients on a hospital to hospital basis, and 4) offering high quality of customer service to win customers over. Given the low expectations for 3Q and current negative sentiment towards the name, we believe an inline quarter should drive upside for the stock.
We lowered group gross margin in FY25E to 54% (from 64%) to be in-line with 1H25 gross margin of 53%. For FY26-29E, we lowered the growth margin to 55-63% (vs. 64% prior), but expect the gross margin to increase as RLS business became more integrated into TLX business.
Following Zircaix's CRL, we expect TLX to resubmit Zircaix BLA application in the next 12 months. With a base case 12- months review, we forecast launch in 2027 (vs. 2025 prior).
While near-term profit expectations have been reduced, UBS is still optimistic about the company's longer term.
