Y-Mabs Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Srikripa Devarakonda from Truist Financial downgraded the rating on the stock to a Hold and gave it a $8.60 price target.
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Srikripa Devarakonda has given his Hold rating due to a combination of factors surrounding the acquisition of Y-mAbs Therapeutics by SERB Pharmaceuticals. The transaction, valued at $412 million, involves an all-cash deal for Y-mAbs’ commercial asset Danyelza and its pipeline, with the acquisition expected to close by the fourth quarter of 2025. This acquisition price represents a significant 105% premium over Y-mAbs’ closing share price prior to the announcement.
Despite the premium, the downgrade from Buy to Hold reflects the adjustment in the price target from $14.00 to $8.60 per share, aligning with the acquisition terms. The acquisition is anticipated to enhance SERB’s rare oncology portfolio and potentially expand Danyelza’s market reach globally. However, the transition and integration process, along with the timeline for potential pipeline developments, contribute to the Hold rating as the company navigates these changes.
Devarakonda covers the Healthcare sector, focusing on stocks such as Scholar Rock Holding, Nurix Therapeutics, and Incyte. According to TipRanks, Devarakonda has an average return of -1.0% and a 40.00% success rate on recommended stocks.
In another report released today, Wedbush also downgraded the stock to a Hold with a $8.60 price target.