Analyst Edward Nash of Canaccord Genuity maintained a Buy rating on Madrigal Pharmaceuticals, boosting the price target to $587.00.
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Edward Nash has given his Buy rating due to a combination of factors including the strong performance of Madrigal Pharmaceuticals’ drug, Rezdiffra, and its anticipated launch in the European Union. The company has shown significant growth in its top-line revenue following a robust third-quarter earnings report in the U.S., which has positively influenced Nash’s projections for the company’s future revenue trajectory.
Additionally, Nash has adjusted his financial model to reflect increased research and development, as well as selling, general, and administrative expenses, particularly due to the expansion into Europe and the focus on endocrinologists. Another critical factor in Nash’s rating is the revised assumption regarding the impact of the Inflation Reduction Act on drug pricing in 2033, where he reduced the expected discount from 25% to 15%, leading to an increased price target from $526 to $587. These adjustments and the company’s strategic positioning contribute to Nash’s optimistic outlook for Madrigal Pharmaceuticals.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $568.00 price target.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is neutral on the stock.