The worst should be over for this formerly troubled stock.
Incyte Corp. (NASDAQ: INCY, Stock Forum) is a formerly troubled stock whose time may finally have come. After falling from north of $12 to under $8 before recent news, the worst should be past the company. Its rheumatoid arthritis news from last week seemed better than the stock move was given credit for, and perhaps it was because of the conference in the EU that showed many other "RA" stocks favorably.
On any other week and without a 400 point DJIA drop this would have gone much higher. Its balance sheet isn't pure here because of long-term debt and we aren't looking for any solid revenues to come out of the company until after 2009 according to the current models.
As this is also an oral treatment it will be far more favorably viewed by those patients who suffer from RA. The average price target from analysts is $14+ and the lowest price target is $10.
Our belief is that this one should get back to $10 sooner than it should see new lows. This looks like a nice entry point. To help matters further, any more positive news from its portfolio is going to put it in the range of small biotechs that could be acquired.
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