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On Wednesday, Deutsche Bank (ETR:DBKGn) analyst Emmanuel Papadakis upgraded argenx SE (ARGX:BB) (NASDAQ: ARGX) stock from Sell to Hold. The new price target is set at EUR575.00. Papadakis provided insight into the decision, noting a change in market conditions and a reevaluation of the company’s future outlook.
The analyst had previously downgraded argenx in mid-January due to concerns that the stock’s valuation had become over-inflated. At that time, the anticipation for clinical catalysts was low, and the focus was on commercial execution. This was after two strong chronic inflammatory demyelinating polyneuropathy (CIDP) launch quarters, which had already heightened expectations, as evidenced by the lackluster market reaction to a solid fourth-quarter performance announced in early January.
Since the downgrade, argenx’s stock has experienced a 20% decline from its peak on January 14, with American Depositary Receipts (ADRs) falling 15% compared to a 3% rise in the Nasdaq Biotechnology Index (NBI). Papadakis highlighted that this underperformance was not unique to argenx, as similar European small and mid-cap (smid) peers, like UCB, also saw comparable declines of around 10% during the same period.
The analyst pointed out that the recent market dislocation, along with a reassessment of argenx’s fiscal year 2025 outlook, contributed to the revised rating. The competitive data points that were emphasized in the January downgrade have also been considered in the context of the current market environment.
The upgrade to Hold reflects a shift in Deutsche Bank’s stance on argenx, suggesting a more neutral outlook for the company’s shares moving forward. The new price target of EUR575.00 offers a reference point for investors against the backdrop of recent market dynamics and the company’s commercial and competitive landscape.
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