Genmab A/S (0MGB – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Justin Smith from Bernstein downgraded the rating on the stock to a Sell and gave it a DKK1,000.00 price target.
Justin Smith has given his Sell rating due to a combination of factors impacting Genmab A/S. The recent setbacks in the ‘Hexabody’ pipeline and the anticipated loss of exclusivity for Darzalex, a key blood cancer treatment, have raised concerns. Smith’s analysis indicates that the stock price does not fully account for the expected decline in revenues following the patent cliff, projecting a significant drop in group revenues from 2030 to 2040.
Furthermore, even in a favorable scenario where Genmab’s growth drivers achieve their peak sales targets, the company’s valuation still suggests a downside risk. Smith’s revised price target of DKK1,000 reflects a substantial discount compared to global biotech peers, indicating a regression in earnings projections. The combination of softer sales, increased investments, and a lack of sufficient M&A capacity to offset the patent cliff further supports the Sell rating.