Cardiff Oncology shares plunge after Q2 earnings miss
On Tuesday, Citi analyst David Lebowitz adjusted the price target on Incyte Corporation (NASDAQ:INCY) shares to $88 from the previous $97 while retaining a Buy rating on the stock. Currently trading at $68.30, the company has seen its shares decline nearly 8% over the past week. The revision follows Incyte’s financial results for the fiscal year 2024, which showcased a top-line beat for its key product franchises. However, the company’s guidance for 2025 fell short of expectations, prompting the analyst to revise earnings estimates downward. According to InvestingPro data, the stock trades at a notably high P/E ratio of 494.2.
Incyte’s management announced a significant development regarding its Jakafi extended release (XR) formulation, which met the FDA’s bioequivalence criteria in a recent study. With a strong balance sheet showing more cash than debt and a healthy current ratio of 1.87, the company is well-positioned to support this development. An application for the new drug approval (NDA) is anticipated to be filed before the end of 2025. The introduction of Jakafi XR is deemed crucial for mitigating the potential impact of the original Jakafi’s patent expiration in 2028.
Lebowitz noted that despite the lower guidance for 2025, Incyte is poised for growth with several key milestones on the horizon. The company is gearing up for a dynamic period with plans to deliver results from four pivotal studies, launch four new drugs, and initiate three additional Phase 3 studies.
The analyst’s commentary highlighted the strategic importance of these developments for Incyte’s future. "This is essential as the Jakafi XR is central to lessening the impact of impending 2028 patent expiration," Lebowitz stated. "Beyond this, Incyte expects multiple defining catalysts to drive its story as it prepares to provide 4 pivotal study readouts, launch 4 drugs, and initiate 3 other Ph3 studies."
In conclusion, while the price target has been reduced, the outlook for Incyte remains positive with the firm’s continued endorsement of a Buy rating, signaling confidence in the company’s long-term prospects and upcoming catalysts. The company has demonstrated solid revenue growth of 12.94% over the last twelve months, and InvestingPro analysis suggests the stock may be undervalued at current levels. For deeper insights into Incyte’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 8 additional ProTips and extensive financial metrics.
In other recent news, Incyte Corporation has been a focal point for investors due to its Q4 earnings and revenue results, as well as a revised stock price target by Stifel. Incyte reported adjusted earnings of $1.43 per share, falling short of analyst estimates of $1.51. However, the biopharmaceutical company saw its revenue surpass consensus forecasts, coming in at $1.18 billion. The company’s top-selling drug Jakafi and topical cream Opzelura contributed significantly to this revenue, with net product revenues rising 11% and 48% YoY respectively.
In other developments, Stifel raised Incyte’s stock price target to $77 from $75, maintaining a Hold rating. Stifel’s commentary highlighted Incyte’s solid top-line beat and an encouraging forward-looking guide for fiscal year 2025, despite concerns regarding increased research and development spending. The firm also expressed cautious optimism about the potential for povorcitinib, a treatment for Hidradenitis Suppurativa, to achieve statistical significance. These developments underscore the evolving dynamics within Incyte Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.