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Valued at a market cap of $19 billion, Incyte Corporation (INCY) is a biopharmaceutical company based in Wilmington, Delaware. It discovers, develops, and commercializes proprietary therapeutics for severe unmet medical needs.
This healthcare company has considerably outperformed the broader market over the past 52 weeks. Shares of INCY have soared 49.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 24.3%. However, on a YTD basis, the stock is down 3.6%, lagging SPX’s 8.1% rise.
Zooming in further, INCY has also outpaced the iShares Biotechnology ETF’s (IBB) 33.1% increase over the past 52 weeks. However, it has slightly trailed IBB’s 3.4% YTD drop.
On Apr. 28, shares of INCY surged 2.1% after posting stronger-than-expected Q1 results. The company’s revenue advanced 20.9% year-over-year to $1.3 billion, topping analyst estimates by 4.1%. Moreover, its adjusted EPS of $1.81 handily exceeded consensus expectations of $1.38. Strong demand across its commercial portfolio, with growth supported by both new and existing products in hematology, oncology, and immunology, aided its results.
For the current fiscal year, ending in December, analysts expect INCY’s EPS to grow 20.8% year over year to $6.74. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 26 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on 11 “Strong Buy,” 14 “Hold,” and one "Strong Sell” rating.
The configuration is slightly less bullish than three months ago, with 12 analysts suggesting a “Strong Buy” rating.
On May 14, Bank of America Securities analyst Tazeen Ahmad maintained a “Buy” rating on Incyte and set a price target of $124, indicating a 30.7% potential upside from the current levels.
The mean price target of $110.50 suggests a 16.4% premium to its current price levels, while its Street-high price target of $135 implies a 42.2% potential upside.
