Up 68% from a multi-year low. Are Telix shares a buy, sell or hold?

Telix shares crashed to just $8.63 per share in mid-February.

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Telix Pharmaceuticals Ltd (ASX: TLX) shares are in the red in Tuesday lunchtime trade. At the time of writing the shares are down 1.7% to $14.50.

Despite today's decline, the ASX biopharmaceutical company's shares have rebounded a whopping 68% since dropping to a multi-year low of $8.63 in mid-February.

Telix shares are now up 27% for the year-to-date, but they're still 43% lower than this time last year.

A doctor appears shocked as he looks through binoculars on a blue background.

Image source: Getty Images

What has pushed the shares higher over the past 9 weeks?

After bottoming out in mid-February, Telix shares have rebounded following a flurry of consecutive good-news updates.

In late-February, the company confirmed that it had filed a key regulatory approval in Europe.

Later in March, Telix posted several announcements about its growth and development plans. 

It released positive Part 1 results from its global Phase 3 ProstACT study of TLX591-Tx, its novel prostate cancer therapy in early-March.

The following week, Telix announced it had resubmitted its New Drug Application (NDA) to the U.S. FDA for TLX101-Px (Pixclara®), a brain cancer imaging candidate. Telix's resubmission includes new data addressing the US Food and Drug Administration (FDA)'s previous requests. 

The good news continued on through April, too.

On the 10th of April, the company announced that the FDA has accepted its NDA for TLX101-Px (Pixclara®).

Just a few days later, Telix announced a major collaboration with US-based Regeneron Pharmaceuticals. The two companies entered a 50/50 global cost and profit-sharing agreement to co-develop radiopharmaceutical therapies targeting solid tumours.

Last week, the biopharma company released an investor presentation which revealed a 56% increase in group revenue and underlying profitability supported by a positive cash balance of US$142 million. Telix also issued FY26 revenue guidance in the range of US$950 million to US$970 million.

The company has also priced and increased its US$600 million convertible bond offering, up from US$550 million due to strong global investor demand.

The flurry of good news has caused a positive swing of sentiment and it looks like many are now buying back into the biopharmaceutical's shares while they are trading for cheap.

What's next for Telix shares? Are they a buy, sell or hold?

Telix shares are widely considered oversold and undervalued, with brokers tipping a significant upside ahead.

TradingView data shows that brokers have a consensus buy/strong buy rating on the shares, with an average target price of $24.44. At the time of writing that implies a 70% upside over the next 12 months.

Some are even more optimistic that the latest rally of positive updates out of Telix will translate into strong growth this year. The maximum target price is $31.01, which translates to a 114% upside at the time of writing.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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