On Friday, Barclays reiterated its Equalweight rating on shares of argenx SE (ARGX:BB) (NASDAQ: ARGX), with a steady price target of EUR390.00. The firm's stance came ahead of the company's second-quarter 2024 results, which are scheduled for release on July 25.
The analyst at Barclays projected that argenx's sales and EBIT for the quarter might fall short of the Bloomberg consensus estimates by 5% and 15%, respectively.
This forecast is based on an updated model for the quarterly number of generalized myasthenia gravis (gMG) patients and a minimal contribution from chronic inflammatory demyelinating polyneuropathy (CIDP) cases.
The analyst noted that despite the investor excitement surrounding argenx's Research and Development day in New York City on July 16, where Phase 2 data and R&D strategy were the focal points, it is not anticipated that the event will significantly alter the company's fundamental narrative.
The R&D day was particularly centered on presenting new data and discussing the company's research and development strategies.
argenx, a biotechnology firm, focuses on developing antibody-based therapies for the treatment of autoimmune diseases and cancer. The company's lead product candidate has been in various stages of clinical trials, targeting conditions such as gMG and CIDP, which are rare, chronic disorders affecting the nervous system.
However, the Barclays analyst suggests that the recent R&D day may not have a considerable impact on the company's stock story in the near term.
As argenx prepares to disclose its second-quarter financial performance later this month, the market will have an opportunity to assess the company's actual results against the projections and evaluate any potential discrepancies from the consensus expectations.
In other recent news, argenx SE has witnessed significant developments. The biotechnology company's drug Vyvgart was approved for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), and promising data was unveiled for another drug candidate, empasiprubart, at the Peripheral Nerve Society Annual Meeting.
This led to H.C. Wainwright raising its price target for argenx from $448 to $490, maintaining a Buy rating. TD Cowen also sustained its Buy rating with a price target of $514, while Wells Fargo, Piper Sandler, and Scotiabank adjusted their price targets to $542, $535, and $416 respectively.
The company's total operating income saw an 83% increase to $413 million, largely propelled by the expansion of Vyvgart. Analyst firms anticipate that the approval of flexible pricing for Vyvgart Hytrulo will significantly impact argenx SE's financial performance, given the drug's potential to tap into a sizable market of refractory patients.
InvestingPro Insights
As argenx SE (NASDAQ: ARGX) gears up to report its second-quarter 2024 results, insights from InvestingPro reveal a mixed financial landscape. The company holds a market capitalization of $27.77 billion and has been trading at a high Price / Book multiple of 6.77, which could indicate a premium valuation relative to its book value. Despite the challenges highlighted by analysts, argenx has demonstrated substantial revenue growth over the last twelve months, with an impressive increase of 126.96%. This growth momentum is reflected in the strong price total returns, with the stock delivering a 22.14% return over the last three months.
InvestingPro Tips suggest that argenx has more cash than debt on its balance sheet, providing a level of financial stability. However, two analysts have revised their earnings downwards for the upcoming period, signaling potential concerns about the company's near-term profitability. Additionally, the Relative Strength Index (RSI) indicates the stock may be in overbought territory, which could imply a pullback in the share price. For investors looking to delve deeper into these metrics and uncover additional InvestingPro Tips, they can explore the comprehensive analysis available at Investing.com/pro/ARGX. Moreover, by using the coupon code PRONEWS24, readers can receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to an extensive array of investment insights. With 10 additional InvestingPro Tips listed for argenx, investors are well-equipped to make informed decisions ahead of the company's financial update.
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