Ironwood Pharmaceuticals: Stability and Growth Potential Amid Internal Control Improvements

JMP Securities analyst Jason Butler has reiterated their bullish stance on IRWD stock, giving a Buy rating today.

Jason Butler’s rating is based on several factors that highlight the stability and potential of Ironwood Pharmaceuticals. Despite identifying material weaknesses in internal controls over financial reporting, the company has not reported any financial misstatements or restatements, which reinforces confidence in its financial integrity. Ironwood is actively working on remediation measures to address these weaknesses, and the associated costs are not expected to be significant.
Furthermore, Butler remains optimistic about Ironwood’s financial outlook, particularly with the company’s 2025 guidance for LINZESS sales and adjusted EBITDA. The ongoing assessment of the Medicare Part D redesign’s impact and the progress on the apraglutide NDA submission are seen as key drivers for future performance. Additionally, the company is in compliance with its debt covenants, which further supports the Buy rating.