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Investing.com - UBS raised its price target on Incyte (NASDAQ:INCY) to $62.00 from $61.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 648.8x, significantly above industry averages, while maintaining strong financial health with a current ratio of 2.04x.
The price target increase reflects UBS’s slightly higher sales projections for Niktimvo, which led to an upward revision in the firm’s 2026 earnings per share estimate to $6.36 from $6.26.
UBS maintained its 9.5x price-to-earnings multiple on the stock, noting that the upcoming second-quarter earnings call with Incyte’s new CEO could be a "seminal event" that clarifies the company’s strategic direction.
The firm highlighted Incyte’s lack of meaningful pipeline diversification beyond its Jakafi product, which faces loss of exclusivity, as a key factor in the stock’s 34% underperformance over the past five years.
Despite the modest price target increase, UBS remains "on the sidelines" regarding Incyte stock, citing a "balanced risk/reward" outlook based on upcoming clinical data updates and commercial performance metrics.
In other recent news, Incyte has announced a significant leadership change with the appointment of Bill Meury as the new President and CEO, succeeding Hervé Hoppenot, who is retiring. This transition has been well-received, with William Blair maintaining a Market Perform rating and Citi reiterating a buy rating with a price target of $88.00. Meury, who brings extensive industry experience, previously led Anthos Therapeutics and Karuna Therapeutics (NASDAQ:KRTX), both of which were acquired by larger pharmaceutical firms. Under Hoppenot’s leadership, Incyte expanded its revenue from $355 million in 2013 to $4.2 billion, transforming into a global operation. In other developments, the FDA has extended the review period for Incyte’s ruxolitinib cream for pediatric atopic dermatitis by three months to allow for further data review. The company remains optimistic about the cream’s potential as a non-steroidal treatment option for children. Lead Independent (LON:IOG) Director Julian Baker has been elected Chairman of the Board, further solidifying Incyte’s leadership team during this transition period.
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