Incyte: Upgrading To Hold After ESMO Closed The Valuation Gap

What happened: The analyst upgraded Incyte (INCY) to Hold from Sell, stating that ESMO closed the valuation gap. Coverage was initiated in September with a Sell rating and a fair value of $100.93 per share. Key numbers: Prior rating: Sell. New rating: Hold. Prior fair value: $100.93 per share. Coverage initiated in September. Why it matters: The analyst's thesis was that the share price required a certain average probability of approval, and the ESMO event narrowed the gap between price and valuation. The author discloses no position in the companies mentioned.

The analyst upgraded Incyte (INCY) to Hold from Sell, stating that ESMO closed the valuation gap. Coverage was initiated in September with a Sell rating and a fair value of $100.93 per share.

The analyst's thesis was that the share price required a certain average probability of approval, and the ESMO event narrowed the gap between price and valuation. The author discloses no position in the companies mentioned.