2 Wall Street Analysts Think Argenx Can Soar More Than 40%. Here's Why They're Right.

Argenx (NASDAQ: ARGX) has been a solid winner for investors over the last 12 months, with its shares rising by roughly 30%. Wall Street thinks that the biotech stock can go even higher. The consensus one-year price target for Argenx reflects a potential upside of around 20%.

Two analysts, though, are even more bullish. Wells Fargo's (NYSE: WFC) Derek Archila and UBS' (NYSE: UBS) Xian Deng predict that Argenx's share price can soar more than 40% over the next 12 months. Here's why they're probably right.

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Three cheers for Argenx

Financial growth usually leads to share price appreciation. Argenx has delivered 18 consecutive quarters of revenue growth. Even better, its momentum is accelerating. In the second quarter of 2026, the company reported 60% year-over-year sales growth. Its revenue jumped 16% from the previous quarter.

What about Argenx's bottom line? The improvement is even more impressive. The drugmaker's earnings nearly doubled in Q2, soaring 93% year over year.

Another reason to cheer for Argenx is its recent pipeline success. On Aug. 17, 2026, Argenx reported positive results from its late-stage Alkivia study evaluating Vyvgart Hytrulo in adults with autoimmune myositis, a chronic inflammatory and muscular disease. This was the first Phase 3 clinical trial to achieve statistically significant improvement for immune-mediated necrotizing myopathy (IMNM), a type of autoimmune myositis for which there are no approved therapies.

Argenx's Alkivia results, though, underscore a third -- and most compelling, in my view -- reason why the bullish targets from Wells Fargo and UBS analysts for the biotech stock are justified. Vyvgart and Vyvgart Hytrulo have now proven themselves across four distinct autoimmune diseases. This track record makes it easy to be optimistic about Argenx's chances of success in targeting other indications. More growth could realistically be on the way.

Potential flies in the ointment

A few things could get in the way of Argenx's share price rising by 40% or more over the next 12 months. For one thing, the company's revenue is generated entirely by its Vyvgart franchise. Any hiccup could derail Argenx's momentum.

Argenx's stock would also sink if it experiences a clinical setback. Investors will be especially watching upcoming late-stage results for empraisprubart in multifocal motor neuropathy in Q4 and in chronic inflammatory demyelinating polyneuropathy (CIDP) in the second half of 2027.

Also, a broader stock market meltdown usually pulls down even the best growth stocks. Argenx could continue to rack up commercial and pipeline successes yet still not jump as much as Wells Fargo and UBS expect, due to market headwinds.

Still, though, I think Argenx's growth prospects are bright. Wall Street's optimism is warranted.

Wells Fargo is an advertising partner of Motley Fool Money. Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Argenx Se. The Motley Fool has a disclosure policy.