Citizens raises argenx stock price target to $1,200 on trial results

Citizens recently upgraded its price target on Argenx SE (NASDAQ: ARGX) to $1,200 from $932, holding onto a Market Outperform rating. The biopharmaceutical company's stock has risen 14% in the past week, currently trading near $987.84, just shy of its 52-week high of $1,002.16. The firm bolstered its risk-adjusted, DCF-derived price target following encouraging Phase 3 ALKIVIA trial results for VYVGART in autoimmune myositis.

The trial met its primary objective, showing a significant improvement in the combined population at 52 weeks, with positive outcomes in the IMNM subtype and promising signals in the DM subtype. While the DM subtype didn't reach statistical significance, the results aligned with the firm's expectations, leading to a 9-point increase in analysts revising their earnings upwards.

The platform's Fair Value analysis indicates the stock is slightly overvalued, but Argenx maintains an EXCELLENT financial health score of 3.83. VYVGART's expanded indication into rheumatology is now possible following the positive trial data. The company plans to submit both subtypes for regulatory approval. In recent news, Argenx SE reported robust second-quarter results, with global Vyvgart sales increasing by approximately $1.516 billion, a 17% jump from the prior quarter and a 60% rise year-over-year.

This surpasses consensus estimates of $1.427 billion, driven by demand in myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. Other analysts have also increased their price targets for Argenx, including RBC Capital, Guggenheim, H.C. Wainwright, and TD Cowen.