Analyst Vikram Purohit of Morgan Stanley maintained a Hold rating on Incyte (INCY – Research Report), reducing the price target to $65.00.
Vikram Purohit has given his Hold rating due to a combination of factors impacting Incyte’s stock. The recent Phase III trial results for povorcitinib in treating hidradenitis suppurativa showed some positive outcomes, but the efficacy was not as high as anticipated when compared to existing treatments. This has led to a reduction in projected peak sales and a more conservative outlook on the company’s pipeline growth.
Additionally, the valuation of Incyte’s stock is currently influenced heavily by its established products, Jakafi and Opzelura, with limited recognition of potential future developments. While there are several upcoming data and regulatory catalysts that could positively impact the stock, the current risk/reward balance suggests maintaining a Hold position until more information becomes available on the company’s pipeline advancements in immunology and oncology.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INCY in relation to earlier this year.