Buy Rating on Ultragenyx Pharmaceutical: Promising Potential of Setrusumab for Osteogenesis Imperfecta and Attractive Risk/Reward Profile

Tazeen Ahmad, an analyst from Bank of America Securities, maintained the Buy rating on Ultragenyx Pharmaceutical (RARE – Research Report). The associated price target remains the same with $80.00.

Tazeen Ahmad has given his Buy rating due to a combination of factors including the promising potential of Ultragenyx Pharmaceutical’s lead candidate, setrusumab, for treating Osteogenesis Imperfecta (OI). The current lack of FDA-approved therapies for OI, a rare bone disorder, positions setrusumab as a significant opportunity in the market. The phase 3 Orbit study for setrusumab includes interim analyses that could allow for early approval, with the next interim analysis expected to have a higher chance of success due to a longer treatment period and increased statistical power.
Despite recent downward pressure on RARE shares due to broader market conditions, Ahmad believes the current valuation underestimates the potential of Ultragenyx’s pipeline. The risk/reward profile is attractive, with a 60% likelihood of success assigned to the OI program, which could lead to substantial sales and stock appreciation if successful. Additionally, the company’s other late-stage pipeline programs provide further upside potential and help mitigate downside risks, supporting the Buy rating with a price objective of $80.

In another report released on May 31, William Blair also initiated coverage with a Buy rating on the stock with a $65.00 price target.

RARE’s price has also changed moderately for the past six months – from $49.090 to $37.510, which is a -23.59% drop .