Wednesday - TD Cowen has increased its price target for Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) to $61 from $59, while maintaining a Buy rating on the stock. The revision follows a reassessment of the company's prospects for its therapies UX143, for osteogenesis imperfecta (OI), and treatments for Angelman syndrome.
The firm's analyst cited an increased probability of success (POS) for UX143 in treating OI, raising the estimate from 65% to 75%. Similarly, the POS for the treatment of Angelman syndrome has been lifted from 50% to 65%. These adjustments reflect greater confidence in the potential market success of these therapies.
Additionally, TD Cowen has revised the estimated annual price for Ultragenyx's DTX401 and DTX301 therapies to $1 million per year. This price adjustment is part of the rationale behind the new price target for Ultragenyx shares.
The new price target of $61, which is a $2 increase from the previous target, is based on 35 times the firm's forecasted non-GAAP earnings per share (EPS) for fiscal year 2028, which is estimated at $2.24, up $0.02 from earlier predictions. The earnings multiple is discounted by 10% to arrive at the target price.
Ultragenyx Pharmaceutical Inc. specializes in the development of treatments for rare and ultra-rare genetic diseases. Its stock performance is closely watched by investors interested in the biotechnology and pharmaceutical sectors. The latest price target update reflects the firm's optimistic view of the company's growth prospects and drug development pipeline.
InvestingPro Insights
As TD Cowen shows optimism for Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), the company's financials and recent market performance provide additional context for investors. According to InvestingPro data, Ultragenyx has a market cap of $3.71 billion, indicating a significant presence in the biotech industry. Despite challenges to profitability, as analysts do not expect the company to be profitable this year, Ultragenyx's liquid assets do exceed its short-term obligations, which may provide some financial stability.
InvestingPro Tips highlight that Ultragenyx operates with a moderate level of debt and has not been profitable over the last twelve months. Nevertheless, the company has experienced a large price uptick of 40.18% over the last six months, suggesting growing investor confidence. It's also important to note that Ultragenyx does not pay a dividend, which is not uncommon for growth-focused biotech companies that reinvest earnings into research and development.
For those looking to dive deeper into the company's analytics, InvestingPro offers additional insights, including a fair value estimate of $53.12, which is lower than the analyst target of $82 but higher than the current price of $45.11. With the next earnings date approaching on May 2, 2024, investors may want to keep a close eye on Ultragenyx's performance metrics. To access more detailed analysis, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 6 more InvestingPro Tips available for Ultragenyx that could provide further guidance for potential investment decisions.
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