UPDATE: Bank of America Reinstates Coverage on Incyte on Two Oncology Platforms

In a report published Wednesday, Bank of America analyst Steve Byrne reinstated coverage on

with a Buy rating and $84.00 price target. In the report, Bank of America noted, “We are reinstating coverage of Incyte (INCY) with a Buy rating and $84 PO. The company's single commercial product Jakafi (ruxolitinib, oral blocker of JAK1/JAK2) accounts for half of our valuation, driven by double digit revenue growth that could accelerate in early 2015 with approval in a new indication. The balance of our PO is from INCY's pipeline, largely driven by the significant long-term potential of the company's IDO inhibitor and pipeline of JAK inhibitors as broad oncology platforms as both interrupt tumor cells' ability to evade the immune system (via T-cell inhibition and tumor-induced inflammation, respectively). While still early in development, the potential to serve as combo backbone drugs is compelling.” Incyte closed on Tuesday at $68.37.