JPMorgan cuts Regeneron target, says selloff ‘very much overdone’

JPMorgan lowered the firm’s price target on Regeneron (REGN) to $800 from $950 and keeps an Overweight rating on the shares. While the IL-33 update in late May was “clearly disappointing,” the product was never a core driver of Regeneron’s model and the selloff in shares “appears very much overdone,” the analyst tells investors in a research note. At these levels, the firm believes Dupixent, Eylea and the company’s cash on hand alone support a valuation well above current share price, even if it were to assume zero pipeline contribution from the rest of the portfolio. With a number of catalysts expected over the next six months, JPMorgan continues to see a path to Regeneron’s “valuation starting to normalize for the story.”