Optimistic Buy Rating for PTC Therapeutics Amid Market Skepticism and Promising Stage 2 Data

Wells Fargo analyst Tiago Fauth has maintained their bullish stance on PTCT stock, giving a Buy rating yesterday.

Tiago Fauth has given his Buy rating due to a combination of factors that highlight the potential of PTC Therapeutics’ programs despite market skepticism. The recent data update showed some variability in certain areas, particularly in Stage 3 and CSF mHTT measurements, which led to a negative market reaction. However, Fauth believes this reaction is excessive, as the overall data still suggests a viable program, especially with the potential for milestone payments, profit sharing, and royalties upon approval.
Fauth points out that the efficacy data is generally positive, particularly in Stage 2 patients, where a dose-dependent improvement was observed in key functional endpoints. Additionally, the safety profile remains favorable, with no treatment-related spikes in NfL levels, contrasting with competitor data. The management’s focus on Stage 2 patients, who make up the majority of the market, and the challenges in measuring CSF mHTT, further support Fauth’s optimistic outlook on the stock.

In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $57.00 price target.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PTCT in relation to earlier this year.