Judah Frommer, an analyst from Morgan Stanley, has initiated a new Hold rating on Incyte (INCY).
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Judah Frommer’s rating is based on several factors, primarily focusing on the upcoming loss of exclusivity for Incyte’s leading product, Jakafi, in the late 2020s. The company is expected to face challenges in maintaining its revenue stream, making it crucial to evaluate the potential of its pipeline products. Frommer notes that while there are promising developments in Incyte’s dermatology pipeline, these may take time to translate into commercial success.
Moreover, the recent data on mutant CALR in essential thrombocythemia (ET) is seen as encouraging, although still in early stages. As Incyte approaches a catalyst-rich period in the second half of 2025, the focus will be on further insights into the pipeline, especially regarding mutant CALR and JAK2V617F targeting agents. Despite recent management changes, there is no expected shift in strategy, which adds to the cautious outlook. Therefore, the Hold rating reflects a balanced view of potential growth against the backdrop of significant upcoming challenges.
In another report released on June 26, RBC Capital also maintained a Hold rating on the stock with a $67.00 price target.
INCY’s price has also changed slightly for the past six months – from $69.530 to $68.170, which is a -1.96% drop .