Morgan Stanley Raises argenx Price Target to $1,110, Signals Growth

Analysis from Morgan Stanley has led to an increase in the price target for argenx (NASDAQ:ARGX), raising it from $1,070.00 to $1,110.00. This adjustment, noted in a research report issued on October 30, 2023, suggests a potential upside of 19.74% based on the company’s current trading price. The firm has maintained an “overweight” rating on the stock, indicating positive expectations for its future performance.

Other financial institutions have also updated their evaluations of argenx. On November 14, Wedbush raised its price target from $880.00 to $1,000.00, assigning an “outperform” rating. Similarly, Piper Sandler increased its target from $820.00 to $930.00 with an “overweight” rating on November 4. Truist Financial adjusted its estimate from $700.00 to $918.00 with a “buy” rating, while Guggenheim reaffirmed a “buy” recommendation with a $1,070.00 target as of September 18. Additionally, Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on October 3.

As it stands, argenx has garnered considerable analyst interest, with one research analyst recommending a Strong Buy, nineteen endorsing a Buy rating, and four suggesting a Hold. According to data compiled by MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” and a consensus price target of $907.67.

Recent Financial Performance

On the earnings front, argenx reported a quarterly earnings per share (EPS) of $4.40, surpassing analysts’ estimates of $4.37 by $0.03. This announcement came on the same day as Morgan Stanley’s revised target. The company achieved a net margin of 41.58% and a return on equity of 29.78%. Revenue for the quarter was reported at $1.12 billion, exceeding expectations of $1.07 billion.

The consensus among analysts predicts argenx will post an EPS of 3.13 for the current fiscal year, showing optimism for continued growth.

Institutional Interest Grows

Recent trading activity indicates that institutional investors are increasingly confident in argenx’s prospects. Wellington Management Group LLP enhanced its stake in the company by 80.1% during the third quarter, now owning 729,986 shares valued at approximately $538.4 million. Additionally, Two Sigma Investments LP raised its position by an impressive 570.3%, acquiring 294,160 shares worth around $216.9 million.

Millennium Management LLC boosted its holdings by 316.9% in the first quarter, while Adage Capital Partners GP L.L.C. increased its stake by 114.3% in the second quarter. Franklin Resources Inc. also added to its position, increasing its holdings by 103.9%. Currently, institutional investors collectively own approximately 60.32% of argenx’s stock.

Company Overview

argenx SE is a biotechnology firm focused on developing therapies for autoimmune diseases. The company’s leading product candidate, efgartigimod, is being tested for various conditions, including myasthenia gravis and immune thrombocytopenia, among others. The firm operates in several regions, including the United States, Japan, Europe, the Middle East, Africa, and China, reflecting its extensive market reach.

As the financial landscape for argenx evolves, continued monitoring of analyst ratings and institutional investments will be crucial in assessing the company’s performance trajectory.