Oppenheimer Boosts Price Target For Incyte Corporation As Key Milestone Events Approach

In its report published Monday, Oppenheimer analyst Christopher Marai has boosted the price target of Incyte Corporation (NASDAQ:INCY) stock to $89 (from $75), following the company’s fourth-quarter results and as key milestone events approach in 2015. The sell-side analyst has maintained a Buy rating on the stock.

Marai noted, “Jakafi’s launch demonstrated continued strength with sales of $358M in 2014 (52%YoY growth) and $106M in 4Q14 (46% growth over 4Q13), in line with consensus ($107M). INCY is well capitalized, with cash continuing to grow to YE2014 balance of $600.3M. Management guided to 2015 Jakafi sales of $525-565M, implying 47-58% YoY growth. Although we see this quarter’s launch progress as relatively in line, our investment thesis based on pipeline strength and JAK revenue growth remains intact.”

The analyst explained his new price target, “We raise our PT to $89 as INCY moves into catalyst-filled 2015, as we add in baricitinib royalties, and pipeline assets (IDO/checkpoint, $15/share) to our valuation (see pg. 3). We’ve added these assets to valuation as we believe INCY’s leading position with JAKs and recent P3 data for baricitinib de-risk this franchise while IDO/checkpoints offer upside.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Marai has a total average return of 36.0% and a 75.0% success rate. Marai is ranked #34 out of 3480 analysts.

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