What Analysts Recommend for Incyte ahead of Q3 Earnings

Wall Street analyst estimates

Wall Street analysts estimate Incyte’s (INCY) revenues will increase by ~17.7% to $449.2 million during the third quarter of 2018 compared to revenues of $381.5 million during the third quarter of 2017. Also, the earnings per share are estimated to be $0.40 for the third quarter of 2018 as compared to earnings per share of $0.08 for the third quarter of 2017.

What Analysts Recommend for Incyte ahead of Q3 Earnings

The above chart shows analyst recommendations for Incyte stock over the last 12 months.

Analyst ratings

Incyte stock has fallen nearly 46.6% over the last 12 months and decreased by ~35.7% in 2018 year-to-date. Analysts’ estimates show that the stock has the potential to return ~37.4% over the next 12 months. Wall Street analyst recommendations suggest a 12-month target price of $83.73 per share as compared to the last price of $60.92 per share as of October 24.

Analyst recommendations

As of October 25, there are 21 analysts tracking Incyte. Of these 21 analysts, three analysts recommended a “strong buy,” ten analysts recommended a “buy,” while eight analysts recommended a “hold” for Incyte. None of the analysts recommended a “sell” for Incyte stock. The changes in analysts’ estimates and recommendations are based on changing trends in the stock price and performance of the company. The consensus rating for Incyte stands at 2.24, which represents a “buy” for long-term growth investors and a “moderate buy” for value investors.

Incyte’s valuation

As of October 25, Incyte is trading at a forward PE multiple of 27.1x as compared to the industry average of 13.6x. Also, the company trades at a forward EV-to-EBITDA multiple of 22.6x as compared to the industry average of 10.1x.

The VanEck Vectors Biotech ETF (BBH) holds 4.1% of its total investments in Incyte (INCY), 4.8% in BioMarin (BMRN), 5.3% in Allergan (AGN), and 5.0% in Biogen (BIIB).