Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stifel lowered its price target on Immunovant (NASDAQ:IMVT) to $50.00 from $61.00 on Monday, while maintaining a Buy rating on the stock following the company’s fiscal first quarter 2026 update. According to InvestingPro data, analyst targets range from $18 to $61, with the stock currently trading near $15.09, suggesting significant upside potential. The company maintains a strong financial position with more cash than debt on its balance sheet.
The research firm continues to view the FcRn class as a multi-blockbuster opportunity with room for several players, comparing it to other large-market autoimmune mechanisms of action.
Stifel believes IMVT-1402 is well-positioned to achieve first-in-class status or a competitive profile across both novel and competitive indications, and considers Immunovant undervalued as one of only two remaining late-stage FcRn biotechs alongside ARGX.
The firm noted that Immunovant’s pivot from Batoclimab to IMVT-1402 has extended timelines to 2026/2027, which has held back shares along with increased control by ROIV over external disclosure and messaging, though clinical development remains on track.
Stifel updated its model for the quarter, increasing its projected out-year expense trajectory to better reflect the breadth of pipeline development, resulting in the reduced price target.
In other recent news, Immunovant has entered into an employment agreement with Eric Venker, M.D., Pharm.D., who has been appointed as the Chief Executive Officer and principal executive officer. Dr. Venker’s annual base salary is set at $672,000, with a discretionary annual performance bonus targeted at 72.25% of his salary, based on performance assessments. Goldman Sachs has resumed coverage of Immunovant with a Neutral rating, highlighting the potential of IMVT-1402 in key indications such as Graves disease and potentially cutaneous lupus erythematosus (CLE). Meanwhile, H.C. Wainwright has adjusted its price target on Immunovant shares to $35.00 from $54.00, while maintaining a Buy rating. This revision follows Immunovant’s announcement of six potential indications for its drug candidate IMVT-1402, including treatments for Graves’ Disease and rheumatoid arthritis. The company plans to begin potential registrational studies for Graves’ Disease and Sjögren’s disease in the summer of 2025. Immunovant has also reported a strong cash position with $714 million on hand as of March, expected to fund operations through the anticipated Graves’ Disease study readout in 2027.
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