Piper Sandler maintains Overweight on Immunovant stock, $57 target

Published 25/02/2025, 13:50
Piper Sandler maintains Overweight on Immunovant stock, $57 target

On Tuesday, Piper Sandler reiterated its Overweight rating on Immunovant (NASDAQ:IMVT) shares with a consistent price target of $57.00. Currently trading at $20.43, the stock has strong support from Wall Street analysts, with InvestingPro data showing a highly bullish consensus rating of 1.36 (where 1 is Strong Buy). The firm’s analysts emphasized the timeliness of investing in Immunovant as the company approaches significant milestones with its batoclimab Phase 3 Myasthenia Gravis (MG) and Phase 2b Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) data readouts, anticipated by March 31, 2025.

The analysts pointed out a valuation discrepancy between Immunovant and Argenx (NASDAQ:ARGX), noting that Immunovant’s market capitalization of approximately $3.47 billion is roughly 11 times smaller than Argenx’s market cap of around $37.82 billion. According to InvestingPro analysis, Immunovant maintains a strong financial position with a current ratio of 6.04, holding more cash than debt on its balance sheet, which provides substantial runway for its clinical development programs. This gap, they argue, presents a substantial buying opportunity as Immunovant prepares to release multiple data readouts and initiate trials for IMVT-1402, its promising pipeline product with six Investigational New Drug (IND) applications already cleared.

Piper Sandler’s analysts are optimistic about the potential success of the upcoming batoclimab Phase 3 MG and Phase 2b CIDP readouts. They highlight that the correlation between deeper IgG reductions and greater clinical response has been established, which in their view, mitigates the risks associated with the upcoming data releases. They believe the market has not fully recognized Immunovant’s value, as detailed in their research note.

Immunovant’s stock rating and price target have been maintained based on the firm’s confidence in the company’s clinical developments and the opportunities they present for investors. The analysts underscore that the current period may be an optimal time for investment in Immunovant, given the potential for its IMVT-1402 to succeed in its clinical trials and the anticipation of data readouts by the end of March 2025. With the stock trading near its 52-week low of $19.07, and analyst targets ranging from $38 to $58, investors seeking deeper insights can access comprehensive valuation metrics and 8 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Immunovant has been the subject of multiple analyst updates and corporate developments. Guggenheim Securities adjusted their price target for Immunovant shares to $44, down from $46, while maintaining a Buy rating. The firm anticipates significant results from Immunovant’s clinical trials for batoclimab in treating myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. Meanwhile, H.C. Wainwright reaffirmed their Buy rating with a $51 price target, expressing confidence in upcoming trial results that could bolster the therapeutic approach of batoclimab.

Additionally, Immunovant registered shares for resale by certain stockholders, allowing them the option to sell their shares in the public market. This registration is part of regular corporate financing activities and does not necessarily indicate immediate changes in company operations. Piper Sandler identified Immunovant as one of the companies with significant catalysts expected in the next year, highlighting its potential impact on the biotech sector. These developments reflect ongoing interest and activity surrounding Immunovant’s drug pipeline and market strategies.

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