Deutsche Bank has lowered its recommendation on Argenx (NASDAQ:ARGX) to “hold” from "buy" rating, citing valuation concerns, while maintaining a price target of €655.
Analyst Emmanuel Papadakis explained that the move reflects a disciplined approach to the bank’s valuation and price target framework.
“We try to avoid being overly dynamic with our recommendation changes, but we also try to be reasonably disciplined with our valuation/price target framework,” Papadakis said.
He noted that although it has only been two months since Deutsche Bank’s pre-Q2 upgrade, issued on July 8, in its EU Pharma Q2 preview, Argenx shares have risen more than 40% since that upgrade and are trading near the bank’s €655 price target, which had already been positively revised following Q2 results.
The downgrade signals that Deutsche Bank sees limited upside from current levels despite recent strong performance, rather than any deterioration in the company’s fundamentals.
Source :
https://www.investing.com/news/stock-market-news/deutsche-bank-downgrades-argenx-to-hold-after-40-rally-655-pt-intact-4236455
