Piper Sandler Starts Incyte (INCY) at Overweight on diversification into dermatology

(Updated - January 31, 2023 8:37 AM EST)

Piper Sandler analyst Allison Bratzel initiates coverage on Incyte (NASDAQ: INCY) with an Overweight rating and a price target of $100, citing the diversification into dermatology.

The analyst commented, "While shares have been largely range-bound for 7+ years, we think that INCY's foray into the dermatology space with Opzelura (topical ruxolitinib) will bring about the next leg of growth for the company as it diversifies beyond Jakafi and its core heme/onc portfolio. Simply put, we think Opzelura revenue expectations for 2023 and the out-years are too low, which is supported by extensive dermatologist survey work (highlighted herein) that is bullish on Opzelura uptake in both atopic dermatitis and vitiligo. Our Opzelura revenue estimate is $110M above consensus for FY23, with this delta growing to >$500M by 2027, and it is this outperformance that we think can get shares moving higher. Buyers to $100/sh."

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

Shares of Incyte closed at $83.65 yesterday.

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