Credit Suisse Downgrades Seattle Genetics (SGEN) to Neutral

Credit Suisse downgraded Seattle Genetics (NASDAQ: SGEN) from Outperform to Neutral with a price target of $70.00 (from $53.00) as pipeline finally sees fair value.

Analyst Kennen MacKay commented, "L: Following ASH and SABCS, we add SGN-LIV1A (15% PoS) and ASG-22ME (30% PoS) and have updated our Adcetris model (detailed in note), resulting in our TP increase by +$17 to $70 (from $53). We continue to like SGEN for what we view as a best-in-class oncology pipeline, though we view the stock as fairly valued on a standalone basis following its ~+30% run following the US presidential elections. Following the elections, we see the Street discounting drug pricing concerns, and anticipating potential for M&A if large biotech/pharma can repatriate cash during a tax holiday granted by the new US presidential administration. Despite this, we await healthcare and tax policy guidance from the Trump administration prior to becoming more bullish on these opportunities and continue to value SGEN on a standalone basis. We see potential for downside from Street expectations if political pricing concerns emerge or if increased M&A is not realized, leading to our Neutral (from Outperform) rating."

For an analyst ratings summary and ratings history on Seattle Genetics click here. For more ratings news on Seattle Genetics click here.

Shares of Seattle Genetics closed at $64.87 yesterday.

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