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Tuesday, Incyte shares (NASDAQ:INCY) saw their price target increased by TD Cowen from $86.00 to $88.00, with the firm maintaining a Buy rating on the stock. Despite a recent 7.85% decline over the past week, InvestingPro data shows the company maintains a GOOD financial health score, with robust fundamentals supporting its growth trajectory. The adjustment follows Incyte’s announcement of a robust fourth quarter, which featured better-than-expected performances from its products Opzelura and Jakafi.
The company’s financial guidance for 2025 was also strong for Jakafi, aligning with consensus expectations, and while forecasts for Opzelura were merely in line with consensus, they still indicated a solid outlook. With impressive revenue growth of 12.94% over the last twelve months and a strong balance sheet showing more cash than debt, InvestingPro analysis suggests the stock is currently undervalued. TD Cowen’s analysis highlighted significant prescription growth for Opzelura and its expansion outside the U.S.
Jakafi’s market performance remained unaffected by competition in the myelofibrosis (MF) space, and it showed particularly strong growth in the treatment of polycythemia vera (PV). The analyst expressed optimism for the potential of povor’s Phase 3 hidradenitis suppurativa (HS) trials to meet statistical significance, albeit potentially falling short of the results seen with competitor Bime.
The report also anticipates positive proof-of-concept data for mCALR/JAKV617F, suggesting further potential upside for Incyte. Overall, TD Cowen’s stance on Incyte remains bullish, citing the company’s recent successes and promising data as key drivers for the maintained Buy rating.
In other recent news, Incyte Corporation has been the subject of varying analyst opinions and financial results. RBC Capital Markets adjusted its outlook on Incyte, reducing the price target to $68 from the previous $70, citing a mix of factors including expectations for Incyte’s product pipeline in 2025, the looming expiration of exclusivity for its flagship drug Jakafi, and a less than expected guidance for Opzelura. On the other hand, Citi analyst David Lebowitz adjusted the price target on Incyte shares to $88 from the previous $97 while retaining a Buy rating. This followed Incyte’s financial results for the fiscal year 2024, which showcased a top-line beat for its key product franchises, despite the company’s guidance for 2025 falling short of expectations.
Meanwhile, Stifel analysts adjusted their price target for Incyte, raising it to $77.00 from the previous target of $75.00, while maintaining a Hold rating on the stock. The firm highlighted Incyte’s solid top-line beat and an encouraging forward-looking guide for fiscal year 2025, albeit with reservations due to increased research and development spending.
In its recent earnings, Incyte reported fourth quarter earnings that beat revenue expectations but missed on earnings per share. The company posted adjusted earnings of $1.43 per share, falling short of analyst estimates of $1.51. However, revenue came in at $1.18 billion, surpassing the consensus forecast of $1.14 billion. For the full year 2024, Incyte reported total revenues of $4.24 billion, up 15% from 2023. Jakafi net product revenues grew 8% to $2.79 billion, while Opzelura revenues surged 50% to $508 million.
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