Incyte upgraded to Buy at Guggenheim following year-to-date underperformance

As previously reported, Guggenheim upgraded Incyte to Buy from Neutral with an $86 price target. The firm believes Incyte’s commercial legacy business “more than justifies the current valuation using conservative assumptions for Jakafi and commercial legacy assets,” while it adds that the late-stage dermatology portfolio could become a significant near-term growth driver. With shares having significantly underperformed year-to-date, the firm thinks the risk-reward to going long is “skewed to the upside,” the analyst tells investors.