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Incyte (INCY) shares have risen 16.53% in 90 days and 39.68% in the last year. Wells Fargo recently downgraded the stock to neutral, citing limited near-term catalysts. The current P/E of 17x is below peer and sector averages. However, the company's recent net income contraction and pipeline execution risks need to be considered. The DCF model suggests that Incyte is undervalued, trading at a 74.1% discount to its fair value estimate of $396.44.

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