Analyst Ritu Baral from TD Cowen maintained a Buy rating on Madrigal Pharmaceuticals and increased the price target to $644.00 from $554.00.
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Ritu Baral has given his Buy rating due to a combination of factors tied to Madrigal’s expanding MASH franchise and strengthened pipeline. She highlights the exclusive global license for ervogastat, a DGAT-2 inhibitor from Pfizer, which strategically complements Madrigal’s existing asset Rezdiffra through a distinct but synergistic mechanism in MASH. The planned 2026 drug–drug interaction work and a Phase 2 factorial combination study are viewed as important steps toward building a differentiated, combination-based treatment platform in a large and under-served market.
In addition, Baral incorporates the F4 MASH opportunity into her model, with new estimates pointing to meaningful incremental upside and potential peak U.S. sales of roughly $2.8 billion. The positive Phase 2 data for ervogastat, including robust reductions in liver fat and favorable safety and tolerability, support confidence in the therapeutic profile and combination potential of the asset. Taken together, the expanded pipeline, sizable market opportunity, and strong clinical rationale for combination therapy lead her to raise the price target and reaffirm a Buy recommendation on Madrigal shares.