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Investing.com - RBC Capital raised its price target on Ascendis Pharma (NASDAQ:ASND) to $230 from $210 while maintaining an Outperform rating following the company’s second-quarter results. The stock, which has surged over 57% in the past six months and is trading near its 52-week high of $190.35, continues to attract analyst attention. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $196 to $304.
Ascendis reported strong performance for its Yorvipath drug, which generated €103 million in revenue versus consensus estimates of €80 million, despite approximately €6 million in foreign exchange headwinds. The company recorded 3,100 prescriptions during the quarter, up from 1,550 in the first quarter after adjusting for bolus patients. This growth contributed to the company’s overall revenue of $398.9 million in the last twelve months, with an impressive gross profit margin of 85.3%.
The prescriber base for Yorvipath expanded from 1,000 to 1,750 doctors, and management expects steady uptake to continue. International expansion is progressing with potential approval in Japan expected later this quarter, which should contribute to the company’s projected base case growth of €5 million per quarter outside the United States.
Ascendis now anticipates reaching profitability this year, noting it was close to break-even this quarter after accounting for a €20 million foreign exchange impact. The company’s Skytrofa product missed expectations with €51 million in revenue versus consensus of €61 million, though management remains optimistic about its recent label expansion to adults.
RBC’s increased price target reflects accelerated growth for Yorvipath, with the firm raising its peak sales estimate by approximately $250 million to $3.25 billion based on extensive checks suggesting Yorvipath will become a €3 billion-plus drug with little competition in an indication affecting 90,000 patients in the United States. InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score, despite current profitability challenges. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report, offering deeper insights into Ascendis Pharma’s growth trajectory and market position.
In other recent news, Ascendis Pharma reported a narrower-than-expected second-quarter loss and revenue that surpassed analyst estimates. The company posted a loss of EUR0.82 per share, which was significantly better than the anticipated EUR1.27 loss. Revenue reached EUR158.05 million, exceeding the consensus estimate of EUR142.38 million and marking a substantial increase from EUR36.0 million in the same period last year. Yorvipath, a key product for Ascendis Pharma, contributed significantly to this performance, with second-quarter revenue reaching €103 million, far surpassing Street expectations of approximately €80 million.
Analyst firms have responded positively to these results. TD Cowen raised its price target for Ascendis Pharma to $227, citing strong performance and momentum for Yorvipath. BofA Securities also adjusted its price target to $227, acknowledging the robust second-quarter results and increased U.S. adoption. Evercore ISI increased its price target to $285, describing the earnings report as a "clean beat" against high expectations. Goldman Sachs followed suit, raising its price target to $250 due to sustained sales momentum. These developments indicate strong confidence in Ascendis Pharma’s recent performance and future potential.
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