Immunovant: B of A Securities Downgrades to Buy, PT to $30

Immunovant: B of A Securities Downgrades to Buy, PT to $30

Immunovant (NASDAQ:IMVT), a clinical-stage biotechnology company focused on therapies for autoimmune conditions, has seen its stock price react to a recent downgrade from B of A Securities. The investment bank has reduced its rating to "Buy" and lowered its price target to $30, down from $33 previously.

The downgrade comes on the heels of Immunovant's latest quarterly earnings report, which showed a net loss of $0.71 per share (GAAP) for the quarter ended June 30, 2025. The company's research and development expenses rose significantly, reaching $101.2 million compared to $75.5 million a year earlier, as multiple clinical trials for its lead anti-neonatal Fc receptor (FcRn) antibody, IMVT-1402, advanced on schedule [1].

While the company has not yet reported any revenue, its cash runway is projected to last through key Graves' disease data in 2027. Immunovant's business focus remains on advancing therapies that target autoimmune diseases, with IMVT-1402 designed to inhibit the neonatal Fc receptor and reduce the level of Immunoglobulin G (IgG) [1].

The company's recent clinical trial expansions and increased spending have led to a rise in research and development expenses, as well as general and administrative expenses. Despite the increased costs, Immunovant's cash position provides runway for its pipeline, with $598.9 million in cash and cash equivalents as of the end of the quarter [1].

The downgrade by B of A Securities reflects the market's cautious stance on Immunovant's financial performance and the competitive landscape for FcRn inhibitors. Analysts will continue to monitor the company's clinical trial results and financial performance as it progresses through its pipeline [2].

References:
[1] https://www.nasdaq.com/articles/immunovant-posts-34-rd-jump-q1
[2] https://www.tipranks.com/stocks/imvt