The company’s latest asset purchase seems to be impressing analysts.
One day after announcing a sizable acquisition, Denmark-based biotech Genmab (GMAB 4.88%) was doing well on the stock exchange Tuesday. A pair of analysts weighed in with bullish new takes on the company, helping push it to a nearly 5% price gain in late-session trading. That figure was many times higher than the marginal (0.1%) rise of the S&P 500 (^GSPC 0.41%) at that point.
An advantageous deal
Genmab has been in the spotlight following its announcement Monday that it agreed to acquire Netherlands-headquartered peer Merus. The price is $97 per share, which is to be paid in cash. All told, the deal is valued at $8 billion, and it has been approved by the boards of directors of both companies. It is expected to close in the first calendar quarter of 2026.
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Genmab wrote in its press release on the acquisition that it should “meaningfully accelerate Genmab’s shift to a wholly owned model, expanding and diversifying the company’s revenue, driving sustained growth into the next decade and contributing to Genmab’s evolution into a biotechnology leader.”
The two analysts publishing updates on Genmab Tuesday waxed bullish on the deal. Truist Securities analyst Asthika Goonewardene reiterated his buy recommendation on the stock, with a $46 per-share price target. According to reports, he wrote that Genmab is effectively acquiring Merus’s late-stage developmental cancer drug petosemtamab for a very attractive price.
A 33% price target hike
Echoing similar sentiments, TD Cowen’s Yaron Werber significantly raised his price target on Genmab; it now stands at $32 per share, well up from the preceding $24. Werber is more cautious about the stock, as he maintained his hold recommendation.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Genmab A/s and Truist Financial. The Motley Fool has a disclosure policy.