Immunovant stock price target cut to $35 at H.C. Wainwright

On Friday, H.C. Wainwright adjusted its price target on shares of Immunovant (NASDAQ:IMVT), reducing it to $35.00 from the previous target of $54.00, while maintaining a Buy rating on the company’s stock. Currently trading at $14.89, with a market capitalization of $2.5 billion, the stock sits well below the broader analyst targets ranging from $17 to $61. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis. The revision follows Immunovant’s announcement of six potential indications for its drug candidate IMVT-1402, which include treatments for Graves’ Disease (GD), rheumatoid arthritis (RA), myasthenia gravis (MG), Sjögren’s disease (SjD), chronic inflammatory demyelinating polyneuropathy (CIDP), and cutaneous lupus erythematosus (CLE).

The company is moving forward with its program, with plans to begin potential registrational studies for GD and SjD in the summer of 2025. Immunovant has reported a strong cash position as of March, with $714 million on hand, which is expected to fund operations through the anticipated GD study readout in 2027. InvestingPro analysis confirms this robust financial position, with a current ratio of 11.16 and minimal debt, indicating strong liquidity to support its development pipeline. Get access to 7 more exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

IMVT-1402 is currently the sole FcRn inhibitor being developed for the treatment of GD. Key opinion leaders (KOLs) in the GD field have indicated that the drug’s ability to significantly reduce IgG levels could lead to meaningful clinical improvements for patients with GD. This is due to the high correlation between the level of pathogenic antibody, TSHR-Abs (IgG), and the severity of GD.

The adjustment of the price target comes in light of recent developments from Biohaven (NASDAQ:BHVN), which has initiated a pivotal study of its own IgG degrader set to begin in the second half of 2025. While Biohaven’s treatment may offer deeper IgG reduction, the clinical significance of this compared to IMVT-1402 is not yet clear.

Taking into account the projected data readout in 2027 and potential commercial launch in calendar year 2028, H.C. Wainwright has recalibrated its model, leading to the new price target of $35 for Immunovant stock. The stock has experienced significant volatility, with a 47% decline over the past six months, though it maintains a "FAIR" overall financial health score according to InvestingPro’s comprehensive analysis framework. Discover the complete financial story with InvestingPro’s exclusive research report, available for over 1,400 US stocks.

In other recent news, Immunovant has reported promising earnings and revenue results, particularly highlighting positive topline data from their Batoclimab studies for Myasthenia Gravis (MG) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). Despite these positive outcomes, the company has decided not to seek immediate regulatory approval for batoclimab in MG or CIDP, choosing instead to focus on advancing IMVT-1402, which is believed to offer deeper and more durable responses. Analyst firms have responded to these developments with mixed evaluations. Stifel raised Immunovant’s stock price target to $61, expressing confidence in the company’s lead asset, IMVT-1402, and its potential in treating autoimmune disorders. H.C. Wainwright maintained a Buy rating with a $51 price target, citing strong trial data for batoclimab. Oppenheimer reiterated an Outperform rating with a $54 target, emphasizing the potential of IMVT-1402. Meanwhile, Citi maintained a Buy rating with a $58 target, acknowledging investor concerns about market competition but pointing to the drug’s promising data. These recent developments have positioned Immunovant as a company to watch in the autoimmune treatment space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.