Why were Telix shares just downgraded?

Bell Potter has become less bullish on this biotech.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers in 2026.

Since the start of the year, the radiopharmaceutical company's shares have risen a sizeable 53%.

While this still leaves its shares well short of their 2025 highs, one leading broker is calling time on the rally.

A distressed young woman reads bad news on her smartphone while standing in a modern indoor setting.

Image source: Getty Images

What is the broker saying?

Bell Potter notes that it recently met with the company and spoke about the prospects of its Pixclara product, which is seeking FDA approval. It commented:

Following a tough year in CY25, Telix continues to control the controllable factors and is now on the cusp of a major step forward with the pending approval of Pixclara. We recently met with the company at Bioshares (Queenstown), coming away encouraged with the prospects for Pixclara's approval based on the company's extensive engagement with the FDA. 

Pixclara is included on the NCCN guidelines for disease management, virtually ensuring commercial success if approved. The resubmission of the NDA for Pixclara included extensive new data which the company expects will satisfy the FDA's efficacy concerns.

The broker has also been looking at Telix's half-year results and was pleased with what it delivered. And while it expects the launch of a competing product to impact fourth-quarter revenue, Bell Potter still believes that its guidance is achievable. It explains:

1H26 increased by 22% to $477m, dominated by US sales of PSMA imaging agents. FY26 revenue guidance range is unchanged at $950m – $970m with the company guiding to the upper end. We expect the launch of a competitor product (TruVu – Lantheus) will impact 4Q26 revenues, nevertheless, the top end of the guidance is realistic. We do not anticipate a change in guidance irrespective of 3Q26 revenues.

Telix shares downgraded 

Despite the positives, Bell Potter believes that Telix shares are now approaching fair value.

As a result, the broker has downgraded them from a buy rating to a hold rating with a steady price target of $19.00. This implies potential upside of approximately 9% for investors from current levels.

Commenting on its investment thesis, Bell Potter said:

The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.

Motley Fool contributor James Mickleboro 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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