Shares of Danish biotechnology company Genmab (NASDAQ:GMAB) fell by 5% today, hitting their lowest point since 2020.
This sharp decline came after Nordea, a leading brokerage firm, downgraded its earnings forecast for Genmab, citing a challenging financial outlook where costs are expected to outpace revenues in the short term.
According to Nordea analyst Michael Novod, Genmab faces a critical period ahead, necessitating substantial investments for the advancement of its drug pipeline.
"Significant investments will be needed for the pipeline to advance with large late-stage clinical trials in the coming years," Novod noted in a report to clients.
Reflecting these concerns, Nordea has revised its EBIT estimates for Genmab to be 20-31% below the market consensus provided by Visible Alpha for the years 2025-2029.
Adding to the company's challenges, Nordea has also reduced Genmab's price target to DKK 1,975 while maintaining a "hold" rating on the stock.
As of the time of writing this report, Genmab's share price stood at $25.53, down nearly 4%.