1) Immunovant, Inc. (NASDAQ:IMVT)
Average Upside Potential: 73.09%
% Fall on a YTD Basis: ~32%
Number of Hedge Fund Holdings: 41
Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage biopharmaceutical company, which is engaged in developing monoclonal antibodies for the treatment of autoimmune diseases. The company remains focused on autoimmune disorders targeting the FcRn mechanism of action.
In the recent past, Immunovant, Inc. (NASDAQ:IMVT)’s stock price was significantly impacted as a result of several concerns. One concern that impacted the investors’ confidence the most was the competitor argenx SE’s failure in pemphigus vulgaris. This has raised questions about the addressable opportunity for the FcRn class. These factors, together with the relatively significant cash burn, have impacted the company’s stock price.
On the other hand, Wall Street believes that Immunovant, Inc. (NASDAQ:IMVT) is well-placed for long-term growth as a result of its strategic growth plans. The company shifted its focus to IMVT-1402 as its lead drug candidate. The market experts believe that this is a strategic growth decision because of the drug’s potential to be best-in-class. IMVT-1402, which is an anti-FcRn candidate, should start 4-5 potentially registrational trials in the upcoming fiscal year.
Recently, Immunovant, Inc. (NASDAQ:IMVT) reported positive outcomes from its Phase 2a trial of batoclimab for the treatment of Graves’ Disease (GD). Notably, the market players are optimistic about the company’s development plans for Graves’ disease, which is a large commercial unmet need.
HC Wainwright reissued a “Buy” rating on the shares of Immunovant, Inc. (NASDAQ:IMVT), issuing a price objective of $51.00 on 10th September.
As per Insider Monkey’s Q2 2024 data, 41 hedge funds were long Immunovant, Inc. (NASDAQ:IMVT). Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:
“Somewhat offsetting the above was adverse stock selection in biotechnology and health care supplies coupled with cash exposure amid favorable market conditions. Weakness in biotechnology was mainly due to disappointing performance from Rocket Pharmaceuticals, Inc. and Immunovant, Inc. (NASDAQ:IMVT), whose shares fell double digits in the period. Immunovant is focused on autoimmune disorders targeting the FcRn mechanism of action. A host of concerns weighed on Immunovant’s stock price, the most critical of which was competitor argenx SE’s failure in pemphigus vulgaris, which has raised questions about the addressable opportunity for the FcRn class. Overall, we continue to believe FcRn will command billions in revenue and that Immunovant has one of the two competitive offerings in the space. We are most optimistic about Immunovant’s development plans in Graves’ disease, a large commercial unmet need in which they currently have no competition.”
While we acknowledge the potential of IMVT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than IMVT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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