Galapagos downgraded to Underperform from Neutral at BofA

BofA downgraded Galapagos to Underperform from Neutral with a price target of $31, down from $41. The analyst is concerned that the shares remain a “value trap.” Galapagos’ enterprise value has remained at a negative $1.5B-$2.0B for over two years and there is no near- or medium-term fix, the analyst tells investors in a research note. The firm says the company’s cancer pipeline has a 3-to-4 year time to market with high cash burn and unclear differentiation in highly competitive markers.