Truist maintains Buy on Genmab stock, price target at $50

Thursday, Truist Securities reiterated their Buy rating on Genmab (CSE:GMAB) A/S (NASDAQ:GMAB) with a steady price target of $50.00. The firm’s analysts remain confident in the biotech company’s prospects, particularly in anticipation of Johnson & Johnson’s (NYSE:JNJ) decision on whether to opt-in on GEN3014.

The analysts highlighted the current market sentiment, where investors seem eager to invest in Genmab shares before J&J’s upcoming decision. They noted a growing gap between Genmab’s share price and the intrinsic value of its pipeline and fundamentals. Despite being in the minority, Truist analysts believe it would be logical for J&J to proceed with the GEN3014 deal, assuming the data is reasonable.

Genmab’s fourth-quarter earnings were also mentioned, with the analysts expressing optimism about the company’s financial health. The company demonstrates robust financial performance with a 96.1% gross profit margin and strong revenue growth of 17.75% over the last twelve months. Get deeper insights into Genmab’s financial metrics and access 10+ additional ProTips with an InvestingPro subscription. They expect the market to eventually recognize the value of Genmab’s offerings and suggested that patient investors should consider the stock for its long-term growth potential.

Genmab, a Danish biotechnology company, focuses on creating and developing antibody therapeutics for the treatment of cancer. The decision by J&J on GEN3014, an investigational antibody therapeutic, is highly anticipated and could significantly impact Genmab’s future.

Truist Securities’ stance on Genmab reflects a positive outlook on the company’s ability to maintain its growth trajectory and deliver value to shareholders. The maintained price target of $50.00 underscores the firm’s belief in the company’s stable growth prospects.

In other recent news, Genmab reported a significant fourth-quarter net profit, exceeding consensus estimates. This profit was driven by reduced research and development spending and a lower corporate tax due to deferred tax recognition. Leerink Partners elevated Genmab’s stock rating to Outperform, citing the company’s proven track record and the potential of its late-stage pipeline programs. Concurrently, BNP Paribas (OTC:BNPQY) Exane upgraded Genmab from Underperform to Neutral, adjusting the price target due to anticipation surrounding a crucial decision from Johnson & Johnson.

In other developments, Genmab granted restricted stock units and warrants to its employees as part of an incentive plan. This move is designed to align the interests of employees with those of shareholders and promote retention within the organization. Additionally, Genmab reported its net sales for DARZALEX, a leading product used in the treatment of multiple myeloma, for the year 2024.

These are the most recent developments for Genmab, a Denmark-based biotechnology company. As always, investors are encouraged to review the full details of Genmab’s financial performance as they become available in the company’s subsequent filings.

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