In a research report issued today, Cowen & Co. analyst Eric Schmidt reiterated an Outperform rating on Incyte Corporation (NASDAQ:INCY), while no price target was provided. The reiteration comes after partner Eli Lilly and Co (NYSE:LLY) unveiled detailed data on two pivotal studies of baricitinib in rheumatoid arthritis.
Schmidt wrote, “Overall, we believe today’s data demonstrates that baricitinib is an incrementally improved JAK inhibitor for refractory RA, largely in-line with investor expectations. Xeljanz generated $89MM in U.S. sales during Q1:15 (+78% Y/Y) and continues to post steady growth. Our consultants expect JAK inhibitors to ultimately capture ~15% of a $20B+ RA/PsA market. As a result, we believe baricitinib could generate $1.5B in sales within RA”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Eric Schmidt has a total average return of 61.8% and a 77.6% success rate. Schmidt has a 83.3% average return when recommending INCY, and is ranked #14 out of 3621 analysts.
Out of the 9 analysts polled by TipRanks, 8 rate Incyte stock a Buy, whereas only one rated it a Hold.With a return potential of 9.70%, the stock’s 12-month consensus target price stands at $116.25.