TD Cowen maintains argenx stock Buy rating, $761 target

On Friday, TD Cowen reaffirmed its Buy rating and $761.00 price target for argenx SE (NASDAQ: ARGX), following the company’s first-quarter earnings report. The firm’s analyst highlighted argenx’s strong quarterly performance, noting that Vyvgart’s net sales of $790 million surpassed both the consensus estimate of $784 million and TD Cowen’s own projection of $775 million. According to InvestingPro data, the company has demonstrated impressive revenue growth of 82% over the last twelve months, with a market capitalization of approximately $35 billion. This achievement is particularly noteworthy given the expected seasonal sales dip in Q1 and the unanticipated, more significant headwinds from Part D redesign, which resulted in increased gross-to-net (GtN) discounts.

The analyst drew attention to the robust volume growth experienced by argenx in Q1, which was seen as a positive indicator for the company’s sales trajectory moving forward. Despite these strong trends, there appears to be a misunderstanding among investors, as suggested by the recent selloff of argenx shares. InvestingPro data shows the stock has declined by 12.4% in the past week, though current analysis suggests the stock may be undervalued based on its Fair Value assessment. For deeper insights, investors can access the comprehensive Pro Research Report, which provides detailed analysis of argenx among 1,400+ top US stocks. TD Cowen sees this market reaction as an opportunity to buy the stock, given the solid growth prospects ahead.

Management at argenx expressed confidence in the company’s ability to sustain its solid sales growth into the second quarter. The company’s outlook is bolstered by the strong sales volume recorded in the first quarter, which management believes was not fully appreciated by the investment community. This confidence is supported by the company’s GREAT Financial Health score from InvestingPro, along with a robust gross profit margin of nearly 50% and positive earnings of $15.94 per share over the last twelve months.

The analyst’s comments further underscore the disconnect between argenx’s actual performance and investor perception. Despite the challenges posed by the Part D redesign, argenx managed to not only meet but exceed sales expectations, a testament to the underlying strength of the company’s sales strategy and the market performance of Vyvgart.

In summary, TD Cowen’s continued endorsement of argenx with a Buy rating and a $761.00 price target reflects the firm’s confidence in the company’s growth potential and resilience in the face of industry-wide challenges. The analyst’s remarks emphasize the opportunity presented by the recent dip in argenx’s stock price, suggesting that the company’s fundamentals remain strong. This view aligns with the broader analyst consensus, as InvestingPro data indicates analyst targets ranging from $605 to $1,063, with two analysts recently revising their earnings estimates upward for the upcoming period.

In other recent news, Argenx (NASDAQ:ARGX) SE reported first-quarter worldwide revenues for Vyvgart totaling $790 million, closely aligning with consensus estimates. Despite meeting expectations, the company’s stock faced pressure due to seasonal headwinds affecting revenue and uncertainties about future net pricing. Several analysts have maintained positive outlooks on Argenx, with Leerink Partners holding an Outperform rating and a $750 target, citing the company’s strong Vyvgart launch and anticipated clinical data catalysts. TD Cowen reiterated a Buy rating with a $761 target, highlighting robust market adoption of Vyvgart for chronic inflammatory demyelinating polyneuropathy (CIDP) and generalized myasthenia gravis (gMG). Stifel also maintained a Buy rating and a $780 target, following the FDA approval of Vyvgart Hytrulo, a pre-filled syringe for self-administration, which simplifies the treatment process. H.C. Wainwright affirmed a Buy rating with a $720 target, emphasizing the PFS’s ease of use and competitive advantage. Guggenheim remains optimistic with a Buy rating and a $1,100 target, noting the FDA approval as a reinforcement of Argenx’s position in the anti-FcRn space. These developments reflect the company’s ongoing growth strategy and the strong market presence of Vyvgart in treating autoimmune diseases.

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