Genmab's recommendation is downgraded to "underperform" by Bernstein - price target lowered to DKK 580.
1/4 11:16
Genmab's recommendation and price target are being shaved off by Bernstein, who is cutting its earnings estimates for the next five years. Bernstein also now believes that the stock should trade at a discount to the rest of the sector.
This is reported by Bloomberg News.
Bernstein cuts its estimates for the period 2025-2029 by up to 15 percent in terms of earnings per share, citing larger investments and more subdued sales estimates.
At the same time, Bernstein now believes that the stock should trade at a large double-digit discount to the rest of the biotech sector, citing that Genmab will hit a patent gap around the end of the decade in connection with the patent expiration of the super-seller Darzalex.
Bernstein, which had not previously factored in a discount on Genmab, is cutting the price target to DKK 1,000 from DKK 1,580. This is the lowest price target among analysts who have provided recommendations and price targets to Bloomberg.
At the same time, the recommendation to "underperform" is cut from the neutral recommendation "market perform".
Genmab closed Monday at DKK 1,340 after a decline of 1.8 percent.
Of the 25 analysts with recommendations in Bloomberg, 16 recommend "buy", while eight are neutral. Only Bernstein recommends a definite "sell". The average price target is 2086.57 - more than double Bernsten's price target.
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