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Amicus stock undervalued ahead of Pompe growth and Fabry outlook - Jefferies

EditorEmilio Ghigini
Published 06/09/2024, 09:14
FOLD
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On Friday, Jefferies, a global investment banking firm, initiated coverage on of Amicus (NASDAQ:FOLD) Therapeutics (NASDAQ: FOLD) stock, a biotechnology company specializing in therapies for rare metabolic diseases. The firm set a Buy rating on the stock, with a price target of $18.00, indicating a positive outlook for the company's future performance.


According to the analyst from Jefferies, Amicus Therapeutics is positioned on the verge of a significant shift from being a value-based company to one focused on growth. The current share price of approximately $11 is believed to be close to the firm's valuation of Amicus's established Fabry disease business. The analyst also suggests that generic competitors for Fabry treatments may enter the market later than the consensus estimates.


Amicus Therapeutics is also expected to see continued growth from its new Pompe disease treatment, which has the potential to become a $750 million-plus franchise. This aspect of the business is seen as an added value, essentially included for free at the current stock valuation.


The investment bank also anticipates that Amicus Therapeutics could engage in business development for a commercial rare disease drug within the next 12 to 18 months. Such a move is projected to be quickly accretive, meaning it could contribute positively to the company's earnings per share, and also aid in driving margin expansion.


The positive stance from Jefferies reflects confidence in Amicus Therapeutics' ability to grow and expand its commercial presence in the rare disease market. The company's current and potential future developments are seen as key drivers for increasing its market value and financial strength.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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