Madrigal Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Jason Zemansky from Bank of America Securities reiterated a Hold rating on the stock and has a $581.00 price target.
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Jason Zemansky has given his Hold rating due to a combination of factors impacting Madrigal Pharmaceuticals. The launch of Rezdiffra, the first MASH therapy, has been impressive in terms of safety and tolerability, yet there are concerns about competitive pressures from low-cost GLP-1s and potent FGF21s expected to enter the market around 2028. Additionally, there are challenges related to MASH skepticism among prescribers and administrative hurdles, which could affect the drug’s adoption.
Despite these challenges, there is a strong near-term support for Rezdiffra, with prescribers planning to increase its use. However, difficulties in patient access and the preference for alternative therapies like GLP-1s and FGF21s remain significant headwinds. These factors, along with elevated investor expectations, contribute to a cautious outlook, leading to the Hold rating. The price objective has been adjusted to $581, reflecting these mixed signals and the potential for modest near-term upside.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MDGL in relation to earlier this year.