Ultragenyx: Trial Setback Creates Buying Opportunity as Diversified Pipeline and Commercial Base Support $60 Target

Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Ultragenyx Pharmaceutical and decreased the price target to $60.00 from $80.00.

Ram Selvaraju has given his Buy rating due to a combination of factors tied to Ultragenyx’s underlying fundamentals and valuation. Despite the setback with setrusumab in osteogenesis imperfecta, he notes that the stock had not been pricing in a major contribution from this asset even before the Phase 3 results, which limits the downside impact. He also emphasizes that Ultragenyx is a diversified, commercial-stage company with multiple approved products generating revenue and a broad pipeline of clinical candidates, several of which are not yet reflected in his valuation. In his view, the recent decline related to the trial failure creates an opportunity to accumulate shares at levels that already reflect much of the program-specific risk.

Selvaraju interprets the setrusumab outcome as a program-specific hurdle rather than a signal of broader weakness in Ultragenyx’s platform or execution. He points out that the drug showed biological activity through consistent improvements in bone mineral density, even though the difficult fracture-rate endpoint was not met, and believes the company can reassess next steps while tightening costs. By removing setrusumab from his model and still arriving at a $60 price target, he underscores that the risk-reward profile remains attractive. Overall, he views the stock as undervalued relative to Ultragenyx’s commercial base, pipeline optionality, and the potential for additional catalysts, which together support maintaining a Buy recommendation.

In another report released today, Citi also maintained a Buy rating on the stock with a $50.00 price target.