Bank of America Securities analyst Jason Gerberry has reiterated their bearish stance on GLPG stock, giving a Sell rating yesterday.
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Jason Gerberry’s rating is based on the company’s strategic shifts and financial outlook. Galapagos has decided to prioritize the development of GLPG5101, one of its CD19 CAR-T cell therapies, over GLPG5102 to streamline the manufacturing process. This decision is aimed at avoiding the complexity and costs associated with maintaining two separate decentralized development networks. Despite this focus, the financial results for the fiscal year 2024 were uneventful, and the company has not provided updates on its proposed spinoff, which remains uncertain.
Furthermore, the company’s cash runway is expected to last until 2028, with limited clarity on future value inflection points, which contributes to a cautious outlook. This uncertainty, combined with the need for further data to inform the development of other therapies like GLPG5301 in multiple myeloma, reinforces the underperform rating. Gerberry has adjusted the price target to $25 due to the refined sales expectations for GLPG5101, reflecting a conservative approach given the current circumstances.
In another report released yesterday, Morgan Stanley also downgraded the stock to a Sell with a $22.00 price target.
GLPG’s price has also changed slightly for the past six months – from $24.460 to $25.490, which is a 4.21% increase.