Berenberg downgraded argenx SE to a hold rating on Tuesday, citing the biotech company's stock valuation after a sharp rally rather than a change in its business outlook. The brokerage maintained its price target at €925, up from €900 previously, while noting the stock had surged nearly 50% since Berenberg upgraded argenx to buy in March.
Argenx shares rose 1.2% to €874.60 on Tuesday, recovering from a 4.2% decline in the prior session. The stock's performance follows positive preliminary results from the Phase 3 ALKIVIA study evaluating Vyvgart in myositis, a rare autoimmune muscle disease. Berenberg raised its peak sales forecast for Vyvgart to $14 billion, reflecting the expanded potential of the drug beyond its existing indications.
The brokerage had previously set a €900 price target in July after reviewing Vyvgart's opportunities in myositis and multifocal motor neuropathy. The latest downgrade underscores concerns over valuation rather than fundamentals, as the stock's rally outpaced near-term expectations.
