Legend Biotech (LEGN) shares are likely trading at or near their fundamental floor, with meaningful upside potential if the company continues executing on its core business, RBC Capital Markets said in a note Friday.

The firm said that Legend is largely insulated from tariff and Most Favored Nation pricing impacts, and the company is on track for profitability within the next 12 months.

The launch of Carvykti, Legend's lead therapy, continues to gain traction. While Arcellx's anito-cel presents a competitive threat, RBC analysts said it is not unequivocally better than Carvykti, which benefits from Legend and partner Janssen Biotech's strong commercial presence and entrenchment in earlier treatment lines.

Adding further momentum, Janssen reported $369 million in net trade sales of Carvykti for the quarter ended March 31, underscoring continued commercial strength.

The brokerage also sees significant upside optionality from Legend's pipeline, including CAR-T treatments targeting Claudin 18.2 and DLL3. Consensus estimates for these programs could exceed $2.5 billion in combined peak sales and generate more than $400 million in revenue plus milestones.

RBC has a outperform rating on the stock, with a $78 price target.

Price: 27.84, Change: +0.15, Percent Change: +0.54