Analyst Evan Seigerman from BMO Capital maintained a Sell rating on Incyte (INCY – Research Report) and keeping the price target at $52.00.
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Evan Seigerman’s rating is based on a combination of factors affecting Incyte’s performance. Despite the recent change in leadership with Bill Meury replacing Hervé Hoppenot as CEO, which could bring a fresh perspective and potential positive changes, the company’s shares have been underperforming, declining approximately 35% over the past five years. This decline is attributed to challenges in research and development and the need for planning around the loss of exclusivity for Jakafi.
Seigerman’s analysis suggests that while new leadership might eventually lead to improvements, these changes will take time to materialize. Furthermore, the company’s revenue from Opzelura is expected to face challenges due to lower usage, and while assets like povorcitinib and axatilimab show potential, they do not address the slowdown in Jakafi’s growth. Additionally, limitations in capital allocation restrict Incyte’s business development capabilities, necessitating reliance on existing assets.
Seigerman covers the Healthcare sector, focusing on stocks such as Bristol-Myers Squibb, Vertex Pharmaceuticals, and Novo Nordisk. According to TipRanks, Seigerman has an average return of 3.9% and a 43.59% success rate on recommended stocks.