Legend Biotech (LEGN) shares should rebound in 2026 on robust execution of Carvykti to treat multiple myeloma, improving real-world safety and manufacturing expansion, RBC Capital Markets said in a note Tuesday.

Shares have declined due to market sentiment that there are limited catalysts amid rising competition. However, the brokerage said it thinks threats will fail to materialize and that competitive threats are overstated.

RBC said it expects profitability in 2026 as Carvykti expands into earlier lines and community practices due to the rapid adoption driven by "remarkable" single-dose efficacy.

The analysts projected $2.80 billion worth of Carvykti sales in 2026 and $8 billion in peak sales. For Q1, it expects incremental sales growth due to seasonal trends like patients treatment timing preferences and insurance plan transfers in the new calendar years, the analysts said.

Carvykti's franchise profitability is also likely to sustain through 2026, while a strong cash position creates flexibility for internal investments and research and development, according to the note.

RBC reiterated its outperform rating on the stock and adjusted its price target to $62 per share from $66 earlier.

Price: 20.28, Change: +0.72, Percent Change: +3.66