Genmab Shares Surge on Merus Acquisition, Analysts Raise Price Targets
Genmab (GMAB 4.48%) shares surged by nearly 5% following the announcement of a significant acquisition, outperforming the marginal rise of the S&P 500. The Danish biotech company's stock price increase comes on the heels of analysts' positive reviews of its purchase of Merus's late-stage cancer drug, petosemtamab.
Truist Securities analyst Asthika Goonewardene commended Genmab's acquisition, reiterating a buy recommendation and setting a $46 per-share price target. He praised the deal's attractive price, which values the transaction at $8 billion and is expected to close in the first quarter of 2026.
The acquisition is anticipated to expedite Genmab's transition to a fully-owned model, broaden and diversify its revenue streams, and foster sustained growth. This move is seen as a significant step towards Genmab's evolution into a biotechnology leader.
TD Cowen's Yaron Werber also weighed in, raising his price target on Genmab to $32 per share, up from the previous $24, while maintaining a hold recommendation.
Genmab's acquisition of Merus for $97 per share in cash has been well-received by analysts, with Truist Securities and TD Cowen both raising their price targets. The deal is expected to drive growth and contribute to Genmab's transformation into a biotechnology powerhouse.
