BMO lifts Protagonist stock target to $72 on positive data

Published 11/03/2025, 15:08
BMO lifts Protagonist stock target to $72 on positive data

On Tuesday, BMO Capital Markets revised its price target for Protagonist Therapeutics (NASDAQ:PTGX) shares, raising it to $72 from the previous $62, while maintaining an Outperform rating on the stock. The stock has shown remarkable momentum, surging nearly 45% in the past week and currently trading near its 52-week high of $57.97. The adjustment comes in response to promising new data related to the company’s treatments for plaque psoriasis (PsO) and ulcerative colitis (UC).

The research firm expressed optimism about the potential of Protagonist’s oral IL-23 inhibitor, Icotrokinra, for treating inflammatory diseases. According to InvestingPro data, the company maintains excellent financial health with an overall score of 4.03, supported by strong cash flow metrics and a solid balance sheet showing more cash than debt. The positive clinical data has led BMO Capital to revise its Protagonist model, increasing the probability of success (PoS) and market penetration expectations for the PsO and UC programs.

The analyst at BMO Capital noted the challenging environment for biotech investments but acknowledged the encouraging news from Protagonist. The revised model reflects the robustness of the data for PsO and UC, which supported the decision to raise the price target.

Furthermore, BMO Capital sees additional upside potential for Protagonist Therapeutics’ stock with expected updates in 2025 on the ongoing programs for PsO and UC, as well as for rusfertide. Rusfertide is Protagonist’s hepcidin mimetic currently being developed for polycythemia vera (PV), a type of blood cancer.

The firm reiterated its Outperform rating, signaling confidence in Protagonist Therapeutics’ ability to perform well in the market based on the latest clinical developments and the company’s promising pipeline of treatments. With analyst targets ranging up to $82 and the company maintaining profitability over the last twelve months, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which offer exclusive financial metrics and expert analysis for over 1,400 US stocks.

In other recent news, Protagonist Therapeutics has been the focus of multiple analyst updates following positive clinical trial results. The company announced that its drug candidate, icotrokinra, met key endpoints in a trial for ulcerative colitis, prompting Jefferies to maintain a Buy rating with a $68 price target. Jefferies noted the drug’s potential efficacy compared to existing treatments. Truist Securities also raised its price target for Protagonist from $60 to $76, driven by promising Phase 2b trial results for another drug, rusfertide, co-developed with Johnson & Johnson. These results exceeded previous expectations, leading to increased sales projections for rusfertide.

H.C. Wainwright reiterated a Buy rating and a $54 target, highlighting the impressive data from the 2025 American Academy of Dermatology meeting, where icotrokinra demonstrated significant efficacy in psoriasis treatment. BTIG maintained its Buy rating with a $73 target, citing anticipated volume growth and strong order intake for upcoming years. Additionally, JMP analysts upheld a Market Outperform rating with a $61 target, acknowledging icotrokinra’s superior performance in recent trials compared to other treatments. These developments underscore the growing confidence among analysts in Protagonist Therapeutics’ drug pipeline and future prospects.

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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