Ardelyx’s Growth Potential and Strategic Efforts Justify Buy Rating Despite Recent Setbacks

Ardelyx (ARDX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joseph Thome from TD Cowen maintained a Buy rating on the stock and has a $10.00 price target.

Joseph Thome has given his Buy rating due to a combination of factors that highlight Ardelyx’s potential for growth despite recent setbacks. The company reported lower-than-expected product sales in the first quarter, primarily due to weaker Ibsrela sales, which were affected by typical seasonal factors in the IBS-C market. However, management remains optimistic, emphasizing a significant year-over-year growth for Ibsrela and maintaining their sales guidance for 2025.
Additionally, the company is actively working to improve Ibsrela’s gross-to-net ratio and has shown promising prescription trends in the early part of the second quarter. While Xphozah’s revenue was impacted by changes in Medicare coverage, Ardelyx is focusing on the non-Medicare segment, which continues to grow. These strategic efforts, along with the company’s commitment to medical education and prescriber engagement, contribute to Thome’s confidence in Ardelyx’s future performance, justifying the Buy rating.

According to TipRanks, Thome is an analyst with an average return of -2.5% and a 33.85% success rate. Thome covers the Healthcare sector, focusing on stocks such as Alkermes, uniQure, and Jazz Pharmaceuticals.