Immunovant's Risk/Reward Profile Balanced After Recent Rally, UBS Says
Immunovant (IMVT) has broad diversification with encouraging updates but faces balanced risk/reward profile after its stock's recent rally, UBS said in a note email Monday.The company's recent updates have moved UBS analysts to factor in more potential disease indications for the drug candidate INVT-1402, according to the note. The analysts updated their forecast for 2035 revenue to $3.2 billion from $1.9 billion previously, taking into account difficult-to-treat rheumatoid arthritis, as well as upcoming datasets such as cutaneous lupus erythematosus and Sjogren's disease.The company's stock price recently rose following positive clinical data in difficult-to-treat rheumatoid arthritis, which could have a favorable readthrough to other indications, the analysts said.However, the analysts said they remain "on the sidelines" until the phase 2 rheumatoid arthritis trial results, expected in H2, which may be mixed, but potentially could lead to clearer positive catalysts in 2027.Clinical trial readouts in graves' disease and myasthenia gravis, anticipated further down the line, could provide significant value as well, the analysts said.UBS maintained the company's stock rating at neutral and raised the price target to $40 from $24.Price: $43.51, Change: $-0.86, Percent Change: -1.94%
