Joseph Schwartz, an analyst from Leerink Partners, maintained the Hold rating on PTC Therapeutics. The associated price target was raised to $50.00.
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Joseph Schwartz has given his Hold rating due to a combination of factors surrounding PTC Therapeutics’ upcoming launch of sepiapterin for the treatment of phenylketonuria (PKU). While the consensus estimates suggest a more rapid uptake compared to previous PKU treatments like Kuvan and Palynziq, Schwartz believes that sepiapterin is unlikely to compensate for the declining revenues from the company’s Duchenne muscular dystrophy (DMD) franchise. This skepticism is partly due to the challenges faced by previous PKU treatments in gaining traction and the significant portion of patients who are lost to follow-up.
Moreover, despite the potential for strong prescription numbers and sales to generate positive investor interest in the short term, Schwartz remains cautious. He suggests that the PKU opportunity with sepiapterin may not be sufficient to offset the financial impact of the declining DMD products, Translarna and Emflaza. As a result, Schwartz implies that additional business development efforts may be necessary to enhance the company’s stock performance. Consequently, he maintains a Market Perform rating and slightly raises the 12-month price target to $50.
In another report released on July 18, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 43 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 PTCT in relation to earlier this year.