Analyst David Lebowitz from Citi maintained a Buy rating on Madrigal Pharmaceuticals and keeping the price target at $456.00.
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David Lebowitz has given his Buy rating due to a combination of factors that suggest strong future potential for Madrigal Pharmaceuticals. A significant reason for this positive outlook is Madrigal’s recent securing of $500 million in non-dilutive financing through a credit facility with Blue Owl Capital. This financial move is strategically important as it provides the company with the resources needed to expand its pipeline, indicating a proactive approach towards business development and diversification beyond its current sole asset, Rezdiffra.
Moreover, the financial arrangement includes a $350 million term loan and a $150 million delayed draw facility, which Madrigal can utilize at its discretion through 2027. This flexibility in funding, along with the potential for additional draws of up to $250 million, positions Madrigal well for future growth. The expected share price return of 37.8% further supports the Buy rating, reflecting a strong short-term upside potential. These factors collectively contribute to the high-risk, high-reward nature of the investment, making it an attractive opportunity for investors seeking growth.
In another report released yesterday, Citizens JMP also reiterated a Buy rating on the stock with a $470.00 price target.