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Investing.com - BofA Securities raised its price target on argenx SE (NASDAQ:ARGX) to $829.00 from $804.00 while maintaining a Buy rating on the stock. The $34.8 billion market cap company has maintained a "GREAT" financial health score according to InvestingPro data, with notably strong growth metrics.
The firm cited strong performance of argenx’s Vyvgart, which reported first-quarter revenues of $790 million, representing a 7% quarter-over-quarter increase. BofA Securities projects second-quarter Vyvgart revenues to reach $885 million, a 12% quarter-over-quarter growth, exceeding the consensus estimate of $864 million. This growth trajectory aligns with the company’s impressive 82% year-over-year revenue growth and five-year compound annual growth rate of 89%.
BofA Securities expects continued expansion of Vyvgart in generalized myasthenia gravis (gMG), noting that doctor checks indicate the treatment is being used earlier in patient care. The firm also anticipates chronic inflammatory demyelinating polyneuropathy (CIDP) will become a larger revenue contributor.
Argenx reported approximately 1,300 CIDP patients using Vyvgart at the end of January, and recently announced European Union approval of Vyvgart Hytrulo for CIDP treatment.
BofA Securities values the commercial opportunity for Vyvgart in gMG and CIDP at $671 per share of its price objective, and considers argenx a top pick for 2025.
In other recent news, argenx SE reported significant developments regarding its key products and clinical trials. The company announced strong initial uptake of its Vyvgart Hytrulo for chronic inflammatory demyelinating polyneuropathy (CIDP), with over 300 patients in the first quarter and approximately 1,000 in the second quarter. However, the U.S. Food and Drug Administration (FDA) is currently evaluating a potential safety signal related to Vyvgart Hytrulo, which has raised concerns about its commercial prospects. Despite this, Citi has maintained its Buy rating and $803.00 price target, emphasizing the need for more detailed data.
Additionally, H.C. Wainwright reiterated its Buy rating and a $720.00 price target following the advancement of ARGX-119 to late-stage clinical development. This decision was based on positive topline data from a Phase 1b study in DOK7-CMS patients. Meanwhile, TD Cowen reaffirmed its Buy rating and $761.00 price target for argenx, citing promising clinical trial results for VYVGART in myositis and Sjogren’s disease. Morgan Stanley (NYSE:MS) also assumed coverage of argenx with an Overweight rating, adjusting the price target to $700.00, focusing on the potential market opportunity for Vyvgart in CIDP.
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