BofA raises Incyte stock price target to $89, maintains Buy rating

Published 29/04/2025, 17:20
BofA raises Incyte stock price target to $89, maintains Buy rating

On Tuesday, BofA Securities adjusted its financial outlook on Incyte (NASDAQ:INCY) Corporation, raising the price target on the company’s shares from $87.00 to $89.00, while reiterating a Buy rating. The update followed Incyte’s first-quarter earnings report, which revealed that Jakafi revenues reached $709 million, surpassing both BofA’s projection of $634 million and the consensus estimate of $641 million. This performance marked an 8% decrease quarter-over-quarter but still exceeded expectations. According to InvestingPro data, Incyte, with its market capitalization of $11.66 billion, appears undervalued compared to its Fair Value, suggesting potential upside opportunity.

Incyte’s management has also increased the full-year 2025 revenue guidance for Jakafi to a range of $2.95 to $3 billion, up from the previous forecast of $2.925 to $2.975 billion. The company attributed the positive adjustment to heightened paid demand and beneficial effects from Medicare Part D redesign, which had a favorable impact on the net pricing in the first quarter. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall score, supported by impressive revenue growth of 14.76% in the last twelve months.

Despite a 27% quarter-over-quarter decline in Opzelura revenues, which amounted to $119 million against expected figures of $121 million by BofA and $128 million by consensus, Incyte’s management remains optimistic. They emphasized the continued momentum in the product’s launch in the U.S. and Europe and anticipate further growth driven by its expansion into pediatric atopic dermatitis in the second half of the year.

Incyte’s solid commercial performance and the anticipated upcoming developments are encouraging signs for the company, according to BofA Securities. The pharmaceutical firm’s recent financial results and future prospects appear to position it favorably in the market.

In other recent news, Incyte Corporation reported impressive financial results for the first quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $1.16, surpassing the predicted $1.04, while revenue reached $1.05 billion, outpacing the anticipated $990.99 million. Incyte’s product revenues saw significant growth, with Jakafi net product revenue increasing by 24% to $79 million and Opselura revenue rising by 38% to $119 million. The launch of Nictimvo contributed $14 million in its initial two months, indicating strong market acceptance. Additionally, the company raised its full-year revenue guidance for Jakafi to a range of $2.95-$3 billion. Incyte plans to launch four new products in 2025 and initiate at least three Phase III studies, which are expected to support future growth. Analysts from firms like Guggenheim and Citi have shown interest in Incyte’s strategic plans and product performance, indicating a positive outlook from the investment community.

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