Nucor earnings beat by $0.08, revenue fell short of estimates
On Monday, UBS analysts reiterated a Neutral rating and maintained a $61.00 price target on Incyte stock (NASDAQ: NASDAQ:INCY), which currently trades at $64.94. According to InvestingPro data, analyst price targets range from $52 to $96, reflecting mixed sentiment on the $12.58 billion biotech company. The analysts expressed caution regarding the potential of Incyte’s drug developments, despite a recent 20% rebound in the stock following a setback in the Phase 3 trial of povorcitinib for Hidradenitis Suppurativa.
The analysts attributed the stock’s recovery to renewed investor interest in the drug’s potential and excitement around mCALR. Despite the company’s strong financial health score of "GOOD" on InvestingPro and impressive 17% revenue growth, they expressed skepticism about the upside potential for both povorcitinib and mCALR. According to the analysts, the recent Phase 3 results suggest that povorcitinib may be used sparingly in patients with prior biologic experience, and concerns about the safety of the JAK mechanism class further limit their enthusiasm.
Additionally, UBS analysts cited scientific literature that highlights significant safety concerns associated with JAK inhibitors, particularly regarding patient population characteristics. These concerns have contributed to their cautious stance on the drug’s future use.
Regarding mCALR, the analysts noted uncertainty about the program’s ability to progress to registrational studies, pending the outcome of upcoming Phase 1 data. This uncertainty adds to their neutral outlook on the stock, as they await further clarity on the drug’s development trajectory.
In other recent news, Incyte Corporation has reported impressive financial results for the first quarter of 2025, with earnings per share reaching $1.16, surpassing Wall Street’s forecast of $1.04. The company’s revenue also exceeded expectations, totaling $1.05 billion against an anticipated $990.99 million, marking a 20% year-over-year increase. Additionally, Incyte has raised its full-year revenue guidance for Jakafi to a range of $2.95 to $3 billion. Incyte has also reached a settlement with Novartis (SIX:NOVN) Pharma AG, agreeing to pay $280 million to resolve a royalty dispute related to the drug JAKAFI. As part of the settlement, future royalty rates on JAKAFI will be reduced by 50% starting January 2025. Furthermore, the U.S. Food and Drug Administration has approved Incyte’s Zynyz for advanced squamous cell carcinoma of the anal canal, providing a new treatment option for patients. In terms of analyst activity, BofA Securities has raised its price target for Incyte’s shares from $87.00 to $89.00 while maintaining a Buy rating, citing the company’s strong financial performance.
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