argenx: Strong Growth and Pipeline Potential Already Priced In, Warranting a Neutral/Hold Rating

In a report released today, Colleen M. Kusy from Robert W. Baird downgraded Argenx Se to a Hold, with a price target of $858.00.

Colleen M. Kusy has given his Hold rating due to a combination of factors tied to valuation and near-term visibility. He acknowledges that argenx has delivered exceptional growth, particularly with Vyvgart in gMG and CIDP, and continues to represent one of the strongest growth profiles in large-cap biotech. However, at a roughly $53 billion market value, he believes the stock already discounts robust revenue expansion in 2026 and embeds meaningful credit for the broader pipeline, making the current valuation appear demanding. In response to the recent discontinuation of efgartigimod in thyroid eye disease, he has also removed that indication from his model and reduced the overall contribution he assigns to the company’s platform and future pipeline.

Kusy further notes that a significant portion of the current share price depends on the success of several key 2026 clinical readouts, including additional efgartigimod indications (ocular MG, ITP, and myositis) and empasiprubart in MMN. While he views management’s development track record and the FcRn mechanism as attractive, he emphasizes that not all prior studies have succeeded, leaving notable clinical and execution risk. He therefore has limited conviction that upcoming data will be powerful enough to drive substantial upside from current levels in the near term. Given these dynamics—strong fundamentals but elevated expectations and reduced pipeline confidence—he concludes that a Neutral/Hold stance and a lower price target of $858 are warranted while waiting for clearer catalysts.

According to TipRanks, M. Kusy is an analyst with an average return of -11.0% and a 34.12% success rate. M. Kusy covers the Healthcare sector, focusing on stocks such as Argenx Se, Karyopharm Therapeutics, and Ocular Therapeutix.

In another report released on December 16, UBS also maintained a Hold rating on the stock with a $910.00 price target.