Galapagos (GLPG – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on April 24. Analyst Faisal Khurshid from Leerink Partners reiterated a Hold rating on the stock and has a $24.00 price target.
Faisal Khurshid has given his Hold rating due to a combination of factors related to Galapagos’s strategic and operational developments. The company is in the process of splitting into two separate entities: a cash-focused SpinCo and a CAR-T-focused new GLPG. This restructuring introduces uncertainty, particularly regarding the effective use of the cash balance retained by SpinCo, which remains a significant question for investors.
Additionally, while Galapagos has chosen mantle cell lymphoma as the lead indication for its CD19 CAR-T program GLPG5101, there are concerns about its potential to outperform existing CAR-T treatments. The competitive landscape and logistical challenges of the CAR-T market add to the cautious outlook. Leadership changes, including the appointment of a new CEO for SpinCo, further contribute to the uncertainty, prompting a Hold rating as the company navigates these transitions.
Khurshid covers the Healthcare sector, focusing on stocks such as Pliant Therapeutics, aTyr Pharma, and Kymera Therapeutics. According to TipRanks, Khurshid has an average return of 26.3% and a 45.59% success rate on recommended stocks.
In another report released on April 24, RBC Capital also maintained a Hold rating on the stock with a $27.00 price target.