Incyte (INCY) just put its INCA033989 program firmly on the radar, with Phase 1 myelofibrosis data showing meaningful responses and the FDA granting Breakthrough Therapy status in essential thrombocythemia, sharpening the stock’s long term narrative.
See our latest analysis for Incyte.
Investors are already leaning into this story, with the share price up 17.6% over the past 90 days and a 41.9% year to date share price return. The 1 year total shareholder return of 41.3% suggests momentum is building as INCA033989 advances and leadership transitions unfold.
If INCA033989 has piqued your interest in drug developers with catalysts ahead, it is worth exploring other potential opportunities across healthcare stocks.
With the shares now hovering just below the average analyst target and the pipeline narrative strengthening, is Incyte still trading at a discount to its true potential, or has the market already priced in the next leg of growth?
Most Popular Narrative Narrative: 1% Undervalued
With Incyte last closing at $98.64 against a narrative fair value of about $99.62, the story hinges on finely balanced optimism and discipline.
The analysts have a consensus price target of $80.727 for Incyte based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $110.0, and the most bearish reporting a price target of just $60.0.
Curious how modest growth, expanding margins and a lower future earnings multiple can still point to upside from here? Unpack the full narrative playbook.
Result: Fair Value of $99.62 (ABOUT RIGHT)
Have a read of the narrative in full and understand what's behind the forecasts.
However, pipeline execution setbacks, or a sharper than expected Jakafi erosion, could quickly flip this balanced setup into a more cautious risk reward story.
Find out about the key risks to this Incyte narrative.
Build Your Own Incyte Narrative
If you see the story differently or simply want to dive into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.
A great starting point for your Incyte research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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