Dennis Ding, an analyst from Jefferies, maintained the Buy rating on Ardelyx. The associated price target is $8.00.
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Dennis Ding has given his Buy rating due to a combination of factors surrounding Ardelyx’s ongoing legal battle with CMS over the classification of Xphozah. The recent update on the docket for oral arguments scheduled on September 25th could potentially lead to a favorable appeals decision by year-end, which might restore Part D coverage for Xphozah. This restoration could significantly boost Ardelyx’s growth prospects, as the drug was previously a strong revenue driver with over $160 million in its first year of launch.
Ding notes that the current market expectations for Xphozah are low, making the potential positive outcome of the appeal an attractive call option. Although the legal case is complex, the possibility of overturning the Chevron doctrine could benefit Ardelyx, as it challenges CMS’s interpretation of the law. Given these factors, Ding sees a non-zero probability of a favorable outcome for Ardelyx, which supports his Buy rating on the stock.
In another report released on June 18, H.C. Wainwright also initiated coverage with a Buy rating on the stock with a $10.00 price target.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is neutral on the stock.