BMO Capital downgraded Incyte to Underperform from Market Perform with a price target of $48, down from $52. The downgrade is driven by Incyte’s recent $2B Dutch auction, which has cut its capacity to acquire, while generating minimal incremental value for holders, the analyst tells investors in a research note. The firm says that with lower cash, the investment turns to research and development, which is already heavily utilized and has shown a track record of “significant missteps.” While Incyte’s recent pipeline wins are promising, the revenues are in smaller indications or are too late to meaningfully resolve Jakafi loss of exclusivity concerns, contends BMO.