Leerink Partners analyst Thomas Smith has maintained their bullish stance on MDGL stock, giving a Buy rating on June 20.
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Thomas Smith has given his Buy rating due to a combination of factors surrounding Madrigal Pharmaceuticals’ recent developments. The company’s announcement of a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) for their drug Rezdiffra, intended for treating noncirrhotic MASH with moderate to advanced liver fibrosis, is a significant milestone. This positive opinion aligns with the expectations for European approval by August 2025, setting the stage for a strategic launch in the EU in the second half of 2025.
Furthermore, the encouraging results from the Phase 3 MAESTRO-NASH trial, which met its dual primary endpoints, bolster confidence in Rezdiffra’s efficacy and safety. The inclusion of resmetirom in European clinical practice guidelines, despite pending approval, suggests a readiness among EU healthcare providers to adopt the treatment. Additionally, the anticipated country-by-country launch starting with Germany and the expected FDA approval in March 2024 further support the optimistic outlook for Madrigal Pharmaceuticals. These factors collectively underpin Thomas Smith’s Buy rating, reflecting the potential for significant market penetration and revenue growth in both the U.S. and EU markets.
According to TipRanks, Smith is a top 100 analyst with an average return of 32.6% and a 46.80% success rate. Smith covers the Healthcare sector, focusing on stocks such as MoonLake Immunotherapeutics, Sagimet Biosciences, Inc. Class A, and Viking Therapeutics.
In another report released on June 20, Goldman Sachs also maintained a Buy rating on the stock with a $540.00 price target.