Genmab A/S, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Sachin Jain from Bank of America Securities reiterated a Buy rating on the stock and has a DKK1,950.00 price target.
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Sachin Jain has given his Buy rating due to a combination of factors that highlight Genmab A/S’s strategic and financial positioning. The recent acquisition of Merus for approximately $8 billion is a significant move, adding a Phase III asset, petosemtamab, which is expected to launch in 2027 for head and neck cancer treatments. This acquisition aligns with Genmab’s focus on oncology and is projected to reach peak sales of around $2.5 billion, with the deal’s valuation being consistent with typical biotech transaction multiples.
Sachin Jain also notes that despite potential short-term earnings per share dilution, the acquisition is anticipated to be EBITDA accretive by the end of 2029. The promising news flow expected in the coming years, including data releases and potential regulatory approvals, adds to the positive outlook. The strategic use of company cash and non-convertible debt financing for the acquisition further supports the financial prudence of this decision, making Genmab a compelling buy for investors.