Morgan Stanley analyst Judah Frommer maintained a Buy rating on PTC Therapeutics (PTCT – Research Report) yesterday and set a price target of $70.00.
Judah Frommer’s rating is based on a combination of factors that highlight the potential of PTC Therapeutics despite recent regulatory challenges. The European Commission’s decision to not renew the authorization for Translarna was anticipated, and PTC Therapeutics had already accounted for minimal revenue contributions from this drug in their future projections. This foresight suggests that the company is strategically prepared for such outcomes.
Furthermore, Frommer emphasizes the potential growth opportunities for PTC Therapeutics through upcoming approvals and data releases. The focus on sepiapterin in PKU and PTC518 in Huntington’s disease represents significant avenues for expansion. Additionally, the pending FDA decision on Translarna in the U.S. market, which is not currently factored into their model, could offer further upside potential. These elements collectively support the Buy rating, indicating confidence in the company’s strategic direction and growth prospects.