BMO Capital Upgrades Incyte (INCY) to Market Perform

BMO Capital analyst Evan David Seigerman upgraded Incyte (NASDAQ: INCY) from Underperform to Market Perform with a price target of $94.00.

The analyst comments: “We are upgrading INCY to Market Perform and raising our target to $94/share (from $75). The crux of our July 2024 downgrade was the lack of a coherent strategy for an Incyte post the 2029 Jakafi loss-of-exclusivity. Management's decision to buy back $2B in shares failed to address larger issues. Fast forward to now, we've seen meaningful progress (with new leadership) in shifting the strategy towards sustainable top- and bottom-line upside. Our new rating reflects meaningful progress, but indicates that not all is solved for P&L growth into the 2030s. Key Points

Management's actions clearly demonstrate urgency to act to evolve Incyte's portfolio. Nearly two years ago, we expressed significant concerns with the strategic direction of Incyte leading to our downgrade to Underperform. At the center of our thesis was a massive $2B share repurchase, with what seemed to be little regard for investing in a pipeline.”

For an analyst ratings summary and ratings history on Incyte click here. For more ratings news on Incyte click here.

Shares of Incyte closed at $98.22 yesterday.

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