Stifel raises Immunovant stock price target to $61 from $58

On Thursday, Stifel analysts increased the price target for Immunovant (NASDAQ:IMVT) shares to $61.00, up from the previous target of $58.00, while reiterating a Buy rating on the stock. This aligns with the broader analyst consensus, as InvestingPro data shows five analysts have recently revised their earnings upwards, with price targets ranging from $20 to $58. The adjustment follows the recent release of positive topline data from the company’s Batoclimab studies for Myasthenia Gravis (MG) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). According to InvestingPro’s Fair Value analysis, the stock currently appears slightly undervalued.

The Stifel team expressed confidence in Immunovant’s lead asset, IMVT-1402, citing its potential within the FcRn inhibitor space, which is considered strategically important and growing. According to their analysis, IMVT-1402 is a highly de-risked asset, capable of achieving greater immunoglobulin G (IgG) reductions compared to first-generation agents. InvestingPro data reveals the company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.04, providing ample resources to advance its clinical programs. This is attributed to its autoinjector presentation, which could offer a differentiated profile with faster and deeper responses for MG and CIDP patients.

The analysts also highlighted the potential for IMVT-1402 to achieve first-in-class positioning in treating Graves’ disease and D2T Rheumatoid Arthritis (RA). They believe that the FcRn and adjacent autoantibody targeted mechanisms of action (MOAs) have the potential to become one of the next mega-blockbuster classes in inflammation and immunology (I&I).

In their report, Stifel updated their model for Immunovant, positioning IMVT-1402 as the lead for MG and CIDP treatment. They removed marginal risk-adjusted near-term revenue for Batoclimab, reflecting a strategic shift, and added explicit credit for the drug’s potential in treating D2T RA.

The analysts’ bullish stance on Immunovant is further supported by the broader industry context, where they also rate companies like Argenx (NASDAQ:ARGX), DNTH, and VRDN positively for their work in similar spaces. These companies are developing therapies targeting FcRn, C1s, and degraders, which are seen as integral to the future of I&I treatment classes.

In other recent news, Immunovant has reported positive clinical trial results for its drug batoclimab, aimed at treating Myasthenia Gravis (MG) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). In the Phase 3 MG study, batoclimab met its primary endpoint with significant improvements in patient scores, particularly for those on higher doses. Despite these results, Immunovant has chosen not to pursue immediate regulatory approval for batoclimab in these conditions, instead focusing on advancing IMVT-1402, a promising anti-FcRn therapy. Analysts have weighed in on these developments, with H.C. Wainwright maintaining a Buy rating and a $51 price target, while Oppenheimer reiterated an Outperform rating with a $54 target, citing confidence in the potential of IMVT-1402. Citi also maintained a Buy rating with a $58 target, acknowledging competition concerns but highlighting the drug’s promising metrics. Jefferies, however, initiated coverage with a Hold rating and a $20 target, expressing caution due to uncertainties around Immunovant’s drug pipeline. These ratings reflect varied perspectives on Immunovant’s strategic focus and the potential impact of its therapies in the competitive landscape of autoimmune disease treatments.

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