Barclays initiates coverage on Incyte stock with Overweight rating

Investing.com - Barclays (LON:BARC) initiated coverage on Incyte (NASDAQ:INCY) with an Overweight rating and a $90.00 price target on Friday. The $14.6 billion market cap company, which according to InvestingPro data has delivered a 16.25% return over the past year, currently trades within analysts’ target range of $60-$110.

The research firm highlighted that Incyte is at a "compelling inflection point," with multiple assets maturing over the next few years that could reshape revenue and extend growth into the next decade.

Barclays noted that investor focus has primarily centered on Incyte’s loss of exclusivity (LOE) for Jakafi at year-end 2028 and concerns about potential replacements for this revenue stream.

The firm identified two important upcoming data catalysts that could shift investor sentiment: pivotal data for tafasitamab (CD19) in first-line DLBCL and Phase 2 data for povorcitinib in CSU at a medical meeting.

These catalysts could help redirect investor attention from Jakafi’s upcoming loss of exclusivity to pipeline-driven growth opportunities, according to Barclays’ research.

In other recent news, Incyte Corporation reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company missed revenue forecasts, posting $1.06 billion in product revenues against a projected $1.15 billion. Despite this, strong product growth and raised guidance for key products contributed to a positive market reaction. Truist Securities raised its price target for Incyte to $79, citing strong sales of Jakafi, which reached $764 million, surpassing the consensus estimate of $743 million. TD Cowen also increased its price target to $89, noting robust results across Incyte’s product portfolio, with Niktimvo showing a 166% quarter-over-quarter revenue increase. RBC Capital adjusted its price target to $72, highlighting demand-driven growth from Jakafi and Niktimvo, as well as better-than-expected performance from Opzelura. BMO Capital raised its target to $60, expressing encouragement from the second-quarter earnings while acknowledging future challenges. These developments reflect a period of dynamic change and strategic adjustments for Incyte under its new CEO.

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