Market Shift: IGM Biosciences Downgraded to Hold
In a surprise move, Jefferies has downgraded IGM Biosciences (IGMS) from Buy to Hold, slashing its price target from $48 to a mere $2. This drastic change comes on the heels of the company’s decision to discontinue all clinical development of drugs in its autoimmune franchise.
Reevaluating Value
The firm has removed clinical program revenue from its model, significantly reducing its view of platform value from $500M to $50M. This revised estimate is largely attributed to the ongoing partnership with Sanofi (SNY) for three early programs.
A Shift in Focus
IGM Biosciences is now exploring internal options and strategic alternatives to maximize value for its shareholders. This new direction has sparked a wave of downgrades from top analysts, with Truist lowering its price target to $12, Guggenheim downgrading to Neutral, and RBC Capital downgrading to Sector Perform.
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