One day after announcing a sizable acquisition, Denmark-based biotech Genmab (GMAB 0.11%) 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 0.11%) 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.
NASDAQ: GMAB
Key Data Points
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.
