Berenberg downgraded argenx SE from 'buy' to 'hold' on Tuesday, citing stretched valuations after the biotech's shares surged nearly 50% since the broker's last upgrade in March.
The firm raised its price target for argenx to €925 from €900, where it had stood since July. The new target remains above the stock's closing price of €874.60 on Tuesday, which recovered 1.2% after a 4.2% decline in the prior session.
The rating cut reflects concerns over valuation rather than a change in the company's outlook, Berenberg stated. The broker also increased its peak sales forecast for argenx's flagship drug Vyvgart to $14 billion, citing positive preliminary results from the Phase 3 ALKIVIA study in myositis. The study supports expanding the drug's addressable market and long-term revenue potential.
argenx's shares have rallied sharply in recent months, driven by strong clinical and commercial performance of Vyvgart across indications including myositis and multifocal motor neuropathy.
