Telix Pharmaceuticals Ltd (ASX: TLX) shares jumped another 5% to $16.44 in Thursday afternoon trading, taking the ASX healthcare stock close to double its value since early February.
After such a stunning run, the obvious question is: where do brokers see Telix shares going over the next 12 months?
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A powerful moat
Telix operates in one of the most specialised corners of healthcare: radiopharmaceuticals. These products combine radioactive isotopes with targeted therapies and diagnostics, helping doctors detect and treat diseases such as cancer with greater precision.
Importantly, this isn't an industry where newcomers can simply walk in and compete overnight. Telix has built specialised capabilities, commercial infrastructure and a growing portfolio of products.
Turning a corner
Telix shares really turned a corner in February following a series of positive announcements from the company.
In August, Telix reported a 22% year-on-year increase in revenue to US$477 million, tracking towards the upper end of its FY26 guidance. Gross margin improved to 55%, while its Precision Medicine segment delivered an impressive 65% margin.
Adjusted EBITDA jumped 146% to US$52 million, while profit after tax reached US$38 million. That included a US$40 million payment from Regeneron.
Telix also reaffirmed its FY26 revenue and other income guidance of more than US$1 billion, with research and development expenditure expected to be between US$230 million and US$270 million.
That's a powerful combination for Telix shares: revenue growth, expanding margins and improving profitability.
Can Telix shares keep climbing?
According to TradingView data, the analyst community remains remarkably bullish.
Fourteen of 17 analysts rate Telix shares a buy or strong buy, while the remaining three have a hold rating. The average price target sits at $25.05, implying potential upside of roughly 53% from $16.44 at the time of writing.
But there is a dissenting voice worth considering.
Bell Potter was pleased with Telix's first-half performance but warned that competition could weigh on revenue later in the year. The broker now believes Telix shares are approaching fair value.
As a result, Bell Potter downgraded the stock from buy to hold while retaining its $19 price target.
That target still represents potential upside of roughly 16% from $16.44. However, the downgrade raises an important question after Telix's extraordinary gains: how much of the good news is already priced in?
Foolish takeaway?
For investors, the bull case remains compelling. Telix is growing rapidly in a specialised market, profitability is improving, and most brokers still see substantial upside. But after a 98% surge, expectations are inevitably higher.
Telix shares may have plenty more room to run, but investors are no longer buying an undiscovered biotech. They're buying a rapidly growing healthcare company with a much higher valuation and much higher expectations.
