Incyte stock price target raised to $76 from $68 at UBS on valuation

Investing.com - UBS raised its price target on Incyte (NASDAQ:INCY) to $76.00 from $68.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company, currently valued at $16.45 billion, appears undervalued based on its Fair Value analysis. The stock trades at a P/E ratio of 19.3x, with analyst targets ranging from $60 to $115.

The investment firm noted that Incyte stock is trading at a premium valuation of approximately 12 times 2026 estimated consensus earnings per share, despite being about three years away from Jakafi’s loss of exclusivity. InvestingPro analysis shows the company maintains strong financial health with a "GREAT" overall score, supported by robust cash flows and minimal debt.

UBS pointed out that meaningful pipeline diversification for the company appears unlikely at this stage.

The analyst observed that Incyte shares have risen 22% year-to-date, driven by updates from Phase 1 mCALR studies, which UBS believes are not significant enough to move the needle despite some investors building a narrative around it as a large opportunity.

Based on investor feedback, UBS also noted that the anticipated cost-cutting measures under the new CEO have not yet materialized according to recent commentary.

In other recent news, Incyte has announced that the U.S. Food and Drug Administration (FDA) has approved Opzelura for treating mild to moderate atopic dermatitis in children aged two and older. This approval marks Opzelura as the first topical JAK inhibitor approved for pediatric use in the U.S. In response to this development, Stifel raised its price target for Incyte to $115, maintaining a Buy rating, citing improved visibility into growth prospects. In contrast, Oppenheimer downgraded Incyte from Outperform to Perform, while keeping a price target of $82, following the company’s strong stock performance this year. Meanwhile, RBC Capital increased its price target for Incyte to $81, highlighting interest in the company’s ’989 CALR antibody program. Additionally, Incyte appointed Dave Gardner as its new Executive Vice President and Chief Strategy Officer, bringing over 20 years of experience in pharmaceutical and biotechnology investing to the role. These developments reflect Incyte’s strategic moves and regulatory milestones in the biopharmaceutical sector.

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