Mizuho raises Insmed stock price target to $96 from $88

Published 18/02/2025, 13:56
Mizuho raises Insmed stock price target to $96 from $88

On Tuesday, Mizuho (NYSE:MFG) Securities reiterated their positive stance on Insmed Incorporated (NASDAQ:INSM), raising the price target on the biopharmaceutical company’s shares to $96.00, up from the previous target of $88.00. The stock has shown remarkable strength, delivering a 169% return over the past year according to InvestingPro data. The firm maintained an Outperform rating on the stock, aligning with the broader analyst consensus of 1.29 (Strong Buy). This adjustment comes as Insmed prepares to announce its fourth quarter results later in the week.

The increase in the price target is primarily attributed to revised assumptions regarding the company’s drug brensocatib, often referred to as brenso. Analysts at Mizuho believe that brensocatib plays a critical role in shaping Insmed’s future success, potentially impacting the company’s strategic direction. The company’s strong revenue growth of 22% year-over-year and impressive gross margin of 77% demonstrate its operational efficiency.

Insmed has been the subject of investor discussions concerning possible mergers and acquisitions targets. Mizuho’s analysts, however, emphasize that their bullish view on Insmed is based on the company’s standalone prospects, beyond any potential M&A activity.

The firm’s analysts point out that there is significant potential for upward revisions in their brensocatib model, which could lead to higher estimates. Additionally, they anticipate several data catalysts later in the year that could positively influence Insmed’s stock performance.

Mizuho’s new price target implies a 21% upside potential from the current levels, underscoring a favorable risk/reward scenario for Insmed. The firm’s analysts remain confident in the company’s prospects and continue to recommend an Outperform rating as they await the upcoming quarterly financial results. InvestingPro analysis reveals the company maintains a healthy current ratio of 6.37, indicating strong liquidity. For deeper insights into Insmed’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, explore InvestingPro’s detailed research report.

In other recent news, Insmed Incorporated has experienced several significant developments. Stifel analysts maintained their Buy rating on Insmed and increased the price target to $97, citing expected clinical developments and the potential launch of brensocatib in the third quarter of 2025. Brensocatib, a potential treatment for non-cystic fibrosis bronchiectasis, has been granted Priority Review status by the U.S. Food and Drug Administration, with a target action date set for August 12, 2025.

Truist Securities also maintained their Buy rating on Insmed, keeping their price target steady at $105. The firm highlighted Insmed’s strong sales performance of its drug Arikayce, which surpassed both the company’s own guidance and the FactSet consensus estimate. In addition, Truist noted the potential multi-billion dollar market for brensocatib in bronchiectasis, with peak sales expected to reach around $6 billion.

In other company developments, Insmed terminated a significant sales agreement with Leerink Partners LLC. The agreement, which allowed Insmed to sell up to $500 million of its common stock, was terminated effective immediately, and no penalties were incurred due to the termination. These recent developments reflect Insmed’s strategic positioning within the biotech industry and its continued focus on developing therapies for patients with serious diseases.

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

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