Truist cuts Genmab stock price target to $45 from $50

On Monday, Truist Securities revised its price target for Genmab (CSE:GMAB) A/S (NASDAQ:GMAB) shares, reducing it to $45 from the previous $50, while still recommending the stock as a Buy. The adjustment follows news that Johnson & Johnson (NYSE:JNJ) has chosen not to continue with the development of GEN3014. Despite this development, Truist Securities believes that the decision by J&J removes a significant overhang affecting investor sentiment towards Genmab.

Truist Securities has expressed confidence in Genmab’s underlying strengths and pipeline, suggesting that the market has not fully recognized the company’s solid fundamentals and potential for future growth. The firm acknowledges that the outcome with GEN3014 was not ideal, but they see it as an event that allows investors to move forward and evaluate Genmab on its established revenue streams and promising pipeline. InvestingPro analysis indicates the stock is currently undervalued, trading at an attractive P/E ratio of 12.58 and a notably low PEG ratio of 0.16.

The updated price target of $45 reflects the exclusion of GEN3014 from Genmab’s valuation. Truist Securities has reiterated its Buy rating, emphasizing the high quality of Genmab’s stock. The firm’s analysts have highlighted Genmab’s strong fundamentals and pipeline as key factors that are currently undervalued by the market. InvestingPro data reveals several positive indicators, including strong cash flow coverage of interest payments and liquid assets exceeding short-term obligations. Subscribers can access 9 additional ProTips and a comprehensive Pro Research Report for deeper insights into Genmab’s investment potential.

Genmab, a biotechnology company, is known for its focus on the creation and development of antibody therapeutics for the treatment of cancer. Despite the recent decision by J&J regarding GEN3014, Truist Securities maintains a positive outlook on the company’s financial health and the potential of its product pipeline.

Investors and market watchers will be monitoring Genmab’s stock performance following this updated price target and the continued endorsement from Truist Securities. The firm’s stance remains that Genmab’s current valuation does not do justice to its established revenue streams and the potential embedded in its future developments.

In other recent news, Genmab A/S disclosed that Johnson & Johnson has decided not to advance with the HexaBody-CD38 program, as indicated in a recent SEC filing. This decision follows Genmab’s evaluation of the drug’s clinical data and market landscape. Despite the setback, Genmab’s CEO, Jan van de Winkel, emphasized the strength of other assets in their late-stage proprietary clinical pipeline. Additionally, Genmab has filed a report detailing recent managerial share transactions, which is crucial for investors monitoring insider trading activities. In a separate announcement, Genmab granted restricted stock units and warrants to its management and employees, aligning their interests with shareholders. The company also reported a share capital increase following the exercise of employee warrants. These developments reflect Genmab’s ongoing strategic efforts and commitment to transparency in its corporate governance actions. Investors and stakeholders may find these updates significant as they evaluate Genmab’s future prospects and financial health.

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