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Monday, Bernstein analysts have upgraded argenx SE (ARGX:BB) (NASDAQ: ARGX), a $36.4 billion market cap biotech company currently trading at $604.96, from Underperform to Outperform, significantly increasing the price target to EUR755.00 from EUR155.00. The upgrade follows a comprehensive review of the company’s earnings projections and research and development productivity. According to InvestingPro data, the company maintains a strong "GREAT" financial health score of 3.17.
The analysts cited improved commercial execution of Vyvgart’s first two indications as a primary reason for increasing their 2025-2033 earnings per share (EPS) forecasts by up to 200%. Additionally, they have incorporated risk-adjusted forecasts for six new opportunities in phase 3 trials, reflecting management’s strong R&D track record.
Argenx (NASDAQ:ARGX)’s recent phase 3 trials and the potential underestimation of these by the market have led Bernstein to believe that their new 2028-2034 EPS estimates are up to 41% above consensus. This outlook is based on the assumption that argenx will achieve a blended volume-based market share of just 8%, despite potential competitive challenges. InvestingPro analysis suggests the stock is currently undervalued, with 10+ additional ProTips available to subscribers.
The substantial rise in the price target to EUR755 is supported by not only the EPS upgrades but also by extending the enterprise value to EBITA valuation window to 2027-2029. This adjustment aims to better capture argenx’s leading growth prospects in the industry.
Bernstein has introduced new elements into their discounted cash flow (DCF) analysis to reflect the potential for argenx to deploy $20-40 billion in cash generated in the 2030s. Previously, their DCF model had a cut-off year of 2044. The new price target suggests a PE29e of 13x, which represents a 4% premium compared to U.S. biotech peers, based on consensus estimates.
In other recent news, argenx SE has been the focus of multiple analyst updates, reflecting a keen interest in the company’s financial outlook and product developments. Guggenheim analysts raised their price target for argenx to $1,100, citing ambitious goals for 2030, including treating 50,000 patients and advancing five new molecules to Phase III trials. They anticipate significant growth, with potential global peak sales exceeding $17 billion. Meanwhile, TD Cowen maintained a Buy rating with a $761 target, expressing confidence in argenx’s profitability by 2025, driven by the successful launch of Vyvgart for various conditions.
H.C. Wainwright adjusted their price target to $720, maintaining a Buy rating, as argenx plans to introduce Vyvgart in an autoinjector format by 2027 to enhance patient accessibility. JMP Securities raised their target to $701, highlighting the strong performance of the VYVGART franchise and the anticipated approval of a pre-filled syringe version. Deutsche Bank (ETR:DBKGn) upgraded argenx from Sell to Hold, setting a target of EUR575, acknowledging changes in market conditions and a reassessment of the company’s outlook.
These developments underscore a range of perspectives on argenx’s growth potential and strategic initiatives. The company’s robust product pipeline and financial strategies have been focal points for analysts, with expectations of continued expansion in the biotech industry.
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