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BMO analysts upgraded shares of Seagen (NASDAQ:SGEN) to Outperform from Market Perform with the price target raised by $1 to $178 per share.
Analysts believe SGEN’s core business is underrated by investors. The three key factors behind an upgrade are:
1) CEO resolution will bring more clarity,
2) Risk from Enhertu’s clinical profile is baked into near-term guidance while Tukysa’s brain activity is a key differentiator longer-term, and
3) Padcev’s opportunity in solid tumors looks intriguing.
On the CEO subject, analysts wrote:
“Dr. Roger Dansey has been serving as SGEN’s interim CEO since the resignation of co-founder Clay Siegall. A search is ongoing for a permanent replacement, which in our view may provide clarity to SGEN’s longer-term strategy in the wake of cooling discussions with MRK on M&A.”
Seagen shares are up almost 2% today.
