In a report released today, Tiago Fauth from Wells Fargo reiterated a Buy rating on Verona Pharma (VRNA – Research Report), with a price target of $138.00.
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Tiago Fauth has given his Buy rating due to a combination of factors that highlight the strong potential of Verona Pharma’s Ohtuvayre. The survey of high-volume COPD prescribers indicates a significant increase in the expected utilization of Ohtuvayre, with some prescribers anticipating its use to triple. This is supported by positive patient feedback and favorable discontinuation and refill rates, which suggest a growing acceptance and demand for the drug.
Furthermore, the anticipated peak sales potential of Ohtuvayre is substantial, with projections indicating it could reach over $6 billion. This is based on the expected ratio of Ohtuvayre to triple therapies, which could translate to a significant revenue stream. Despite Verona Pharma’s strong stock performance, Fauth believes the market is undervaluing the potential peak sales, which are trending well above current market expectations. This underappreciation of Ohtuvayre’s strategic value and its potential use in bronchiectasis further supports the Buy rating.
In another report released on June 18, Roth MKM also maintained a Buy rating on the stock with a $116.00 price target.