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Wilmington, Delaware-based Incyte Corporation (INCY) is a biopharmaceutical company that discovers, develops, and commercializes therapeutics for serious medical needs. Valued at a market cap of $12.3 billion, the company's primary focus areas include oncology, inflammation, and autoimmunity.
This biotech company has underperformed the broader market over the past 52 weeks. Shares of INCY have gained 11.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 12.5%. Moreover, on a YTD basis, the stock is down 8.3%, compared to SPX’s 1.3% uptick.
Nonetheless, narrowing the focus, INCY has outpaced the iShares Biotechnology ETF’s (IBB) 11.8% loss over the past 52 weeks and 8.4% downtick on a YTD basis.
On Apr. 29, INCY delivered better-than-expected Q1 results, promoting its share price to rise 1.5% that day. The company posted revenue of $1.1 billion, which advanced 19.5% from the year-ago quarter and exceeded the forecasted figure by 4%. Moreover, its adjusted EPS doubled from the previous-year quarter to $1.16 and topped the consensus estimate by a notable margin of 14.9%. This strong performance was driven by continued growth in sales of Jakafi and Opzelura, along with the successful launch of Niktimvo. Additionally, noting this momentum, the company raised its full year 2025 Jakafi revenue guidance and now expects it to be between $2.95 billion and $3 billion.
For the current fiscal year, ending in December, analysts expect INCY’s EPS to grow significantly year over year to $4.75. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters, while surpassing on another occasion.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on nine “Strong Buy,” 14 “Hold,” and one “Strong Sell” rating.
This configuration is less bullish than two months ago, with 11 analysts suggesting a “Strong Buy” rating.
On May 13, Bank of America Corporation (BAC) analyst Tazeen Ahmad maintained a “Buy” rating on INCY and set a price target of $89, which indicates a 40.6% potential upside from the current levels.
The mean price target of $74.20 represents a 17.2% premium from Incyte’s current price levels, while the Street-high price target of $95 suggests a notable upside potential of 50.1%.
