Piper Sandler Downgrades Seattle Genetics, Says Visibility Limited On Value Creation

Seattle Genetics, Inc’s SGEN stock already reflects the urothelial bladder cancer opportunity, according to Piper Sandler.

The sell-side firm said there is limited visibility into significant value-creating events for the company, while checks suggest no upside to Padcev revenues in the second quarter. 

The Seattle Genetics Analyst: Joseph Catanzaro downgraded Seattle Genetics from Overweight to Neutral and raised the price target from $155 to $165.

The Seattle Genetics Thesis: The biotechnology company’s execution has been solid over the past 12 months, and there were clear value creation opportunities from clinical, regulatory and commercial catalysts, Catanzaro said in the Friday downgrade note. (See his track record here.)

Seattle Genetics seems to have limited upside over the next 12 months, the analyst said. Some additional data may be released for enfortumab vedotin in UBC, but this is already reflected in the stock, he said. 

“The rest of the pipeline is likely to generate consistent data flow, but finding $5B+ in value to continue to justify an overweight rating is asking a lot.”

Although Padcev continues to be well-received, a key opinion leader survey suggests revenue from the antibody-drug conjugate in the second quarter is likely to be in-line with expectations versus the massive beat in the previous quarter, Catanzaro said. 

SGEN Price Action: Shares of Seattle Genetics were trading down by 2.54% to $168.51 at last check Friday. 

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