Promising Phase III Trial Results Support Buy Rating for Madrigal Pharmaceuticals

In a report released yesterday, Edward Nash from Canaccord Genuity maintained a Buy rating on Madrigal Pharmaceuticals (MDGL – Research Report), with a price target of $420.00.

Edward Nash has given his Buy rating due to a combination of factors related to the promising results from Madrigal Pharmaceuticals’ ongoing clinical trials. The company presented encouraging two-year data from the open-label compensated MASH cirrhosis arm of their Phase III MAESTRO-NAFLD-1 trial, which showed significant improvements in liver-related health metrics such as stiffness, fat, fibrosis biomarkers, and volume. These results are seen as reducing the risk associated with their ongoing Phase III MAESTRO-NASH Outcomes study.
Additionally, the treatment with resmetirom demonstrated the potential to reverse fibrosis stages in patients with advanced liver conditions. Specifically, after two years of treatment, a notable percentage of patients showed a reversal in fibrosis stage, with significant reductions in liver stiffness. The positive outcomes, including a substantial portion of patients achieving improvement in liver stiffness, underscore the potential efficacy of resmetirom, supporting Nash’s optimistic outlook and Buy rating for Madrigal Pharmaceuticals.

In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $456.00 price target.

Based on the recent corporate insider activity of 53 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 MDGL in relation to earlier this year.