RBC Capital keeps Outperform rating on argenx with $1,100 target, 'we are buyers into weakness'

RBC Capital analyst Luca Issi reiterated an Outperform rating and a $1,100.00 price target on argenx SE (NASDAQ: ARGX).

The reiteration follows a setback in argenx's Sjögren's disease program, which Issi described as "clearly unfortunate," noting that the Phase II trial had shown promising results with 45% CRESS responders versus 11% for placebo. The analyst said the stock decline appeared excessive, noting that Sjögren's contributed $68 to the firm's model while the stock fell nearly twice that amount in pre-market trading.

Issi also commented on argenx's celiac disease program, noting that a Phase II trial produced a p-value of 0.0176, compared with p=0.0099 in a prior Phase Ib study. He attributed the difference to a more intense glucose challenge in the Phase II design, making direct comparisons difficult. The company is advancing the celiac program to Phase III, with secondary endpoints described as generally consistent with the primary endpoint.

The analyst noted that argenx has approximately 20 Phase II/III trials ongoing and projected the company's revenue could grow from roughly $6 billion to $10 billion before the end of the decade.

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