H.C. Wainwright analyst Matthew Caufield has reiterated their bullish stance on ARDX stock, giving a Buy rating yesterday.
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Matthew Caufield has given his Buy rating due to a combination of factors, primarily focusing on Ardelyx’s commercial execution and growth prospects. The company has shown significant progress with its product IBSRELA, which is used to treat irritable bowel syndrome with constipation (IBS-C) in adults. The demonstrated double-digit growth in commercial sales and the increased revenue guidance for 2025, from $240-$250 million to $250-$260 million, highlight the product’s market potential. The unique mechanism of IBSRELA, which differentiates it from standard therapies, further supports its competitive advantage.
Additionally, Ardelyx’s product XPHOZAH, used for treating hyperphosphatemia in adults with chronic kidney disease on dialysis, has also shown promising commercial execution. Despite challenges such as the loss of Medicare Part D coverage, the company has managed to maintain growth through strategic initiatives like the ArdelyxAssist patient assistance program. The continued momentum in prescriptions and the potential for legal proceedings to influence Medicare coverage decisions are seen as opportunities for sustained growth, reinforcing the Buy rating and the $10 price target.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $9.00 price target.