Deutsche Bank downgraded argenx SE to Hold from Buy on Monday, citing valuation concerns despite raising the stock's price target to €925 from €900.
The adjustment follows positive Phase 3 ALKIVIA trial results for Vyvgart in myositis, which argenx reported earlier this month. Deutsche Bank had previously raised its price target by 20% to €900 in July, aligning its outlook with the anticipated success of the trial.
The stock has gained nearly 50% since the bank upgraded it to Buy in March and delivered a 58% return over the past year. Argenx shares were trading at $1,005, about 4% below their 52-week high of $1,059.
Deutsche Bank modestly increased its peak sales forecast for Vyvgart to $14 billion, though this adjustment reflects prior assumptions tied to the myositis trial's success. The bank maintained its Hold rating, emphasizing that the stock's valuation had outpaced its updated projections.
Other analysts have also adjusted their targets following the trial results. RBC Capital raised its target to $1,100, while Citizens set a new target of $1,200. TD Cowen lifted its target to $1,353, driven by higher fiscal 2027 revenue projections for Vyvgart. H.C. Wainwright, however, maintained its $940 target after argenx announced its acquisition of Forte Biosciences.
Arggenx agreed to acquire Forte Biosciences for $77 per share in cash, a 41% premium to Forte's prior closing price, valuing the deal at approximately $2.2 billion. The acquisition is expected to close in the third quarter.
