Analyst Evan Seigerman from BMO Capital reiterated a Sell rating on Incyte (INCY – Research Report) and keeping the price target at $52.00.
Evan Seigerman has given his Sell rating due to a combination of factors impacting Incyte’s stock. The recent Phase 3 data for povorcitinib in treating hidradenitis suppurativa (HS) did not meet the high expectations set by earlier Phase 2 results. The placebo-adjusted response rates were significantly lower than anticipated, which diminishes the drug’s competitive edge against similar treatments like AbbVie’s upadacitinib.
Moreover, while povorcitinib is still expected to gain approval, its lack of differentiation from existing treatments could result in slower market uptake. Additionally, Incyte faces challenges with other products such as Opzelura, which may see reduced revenue due to lower usage. The company’s reliance on existing products like Jakafi, which is experiencing slowed growth, further supports the Sell rating. These factors collectively contribute to a less favorable outlook for Incyte’s stock performance.
Seigerman covers the Healthcare sector, focusing on stocks such as Novo Nordisk, Biogen, and Vertex Pharmaceuticals. According to TipRanks, Seigerman has an average return of 6.6% and a 47.71% success rate on recommended stocks.