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J.P. Morgan Raises Incyte Price Target Following 4Q Update


In a research report sent to investors today, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on Incyte Corp. (NASDAQ:INCY) and slightly raised the price target to $84 (from $80), following the company’s fourth-quarter results, posting EPS of $(0.22) vs. consensus of $(0.10).

Kasimov wrote, “4Q Jakafi product revs were in line ($106M vs. JPMe/Bloomberg cons of $108M/$107M), and INCY provided encouraging 2015 guidance for net Jakafi product revenues of $525- 565M vs. JPMe/ Bloomberg cons of $533M /$527M.”

The analyst continued, “The PV launch is progressing as expected. On a pipeline front, everything is on track; INCY’s R&D guidance of $450-500M vs. JPMe of $394M highlights the growth in the pipeline which now as 2 new candidates (FGFR and BDR inhibitors) as well as increased I/O presence via the recent Agenus and Advaxis deals. On IDO, INCY expects the various PD-1/PD-L1+IDO trials will enter expansion phases this year, and with positive data it will “move swiftly” into potential pivotal trials.”

Bottom line, “INCY’s execution, both commercially and clinically, continues to be very solid. We believe the company’s increasing commercial footprint and multiple mid-to-late-stage blockbuster candidates differentiate INCY from many of its peers and offer compelling value potential.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 11.5% and a 52.6% success rate. Kasimov has a 168.1% average return when recommending INCY, and is ranked #553 out of 3510 analysts.