BofA cuts Amicus Therapeutics stock target to $14, keeps Buy rating

Published 19/02/2025, 20:36
BofA cuts Amicus Therapeutics stock target to $14, keeps Buy rating

On Wednesday, BofA Securities adjusted its price target for Amicus Therapeutics (NASDAQ:FOLD) shares, reducing it to $14 from the previous $15, while retaining a Buy rating on the stock. According to InvestingPro data, analyst targets for the company range from $12 to $21, with the stock currently trading at $9.74. The revision follows the announcement of the company’s full-year 2024 total revenue of $528.3 million, marking a year-over-year increase of 33%. Sales of Galafold, the company’s key product, reached $458.2 million, reflecting a 19% growth from the previous year, with Pombiliti+Opfolda (P&O) contributing $70.2 million, aligning with prior projections.

The company’s management attributes the continued growth of Galafold primarily to strong demand from both new patients and those switching from other treatments. Efforts to broaden the market, including targeting new patient populations and expanding geographically and through additional label approvals, were highlighted. Management also noted a high adherence rate of over 90%, which they credit to educational efforts aimed at healthcare professionals and patients. With a market capitalization of $2.91 billion and a healthy current ratio of 3.15, the company maintains strong liquidity to support its growth initiatives.

BofA Securities expressed optimism regarding the sustained growth of Galafold several years post-launch, as well as the potential to further expand commercial opportunities through P&O. The firm’s decision to maintain a Buy rating reflects confidence in the company’s future prospects.

The adjustments made by BofA Securities to the price target and outlook for Amicus Therapeutics were based on a discounted cash flow (DCF) model, which incorporated the latest fourth-quarter results, cash position, share count, and revised revenue estimates. The firm also adjusted operating expenses to account for anticipated commercial launches.

In other recent news, Amicus Therapeutics reported its fiscal year 2024 revenue, which totaled $528.5 million, marking a 32% increase year-over-year and aligning with expectations. This growth was largely due to Galafold sales for Fabry disease, which reached $458 million, slightly surpassing analyst estimates. Additionally, Pombiliti+Opfolda revenue for Pompe disease came in at $70.3 million, consistent with projections. The company anticipates exceeding $1 billion in total revenue by 2028, with Galafold sales expected to reach approximately $1 billion by 2037, supported by extended exclusivity. In other developments, Morgan Stanley (NYSE:MS) downgraded Amicus Therapeutics to an Equalweight rating, adjusting the price target to $12.00 from $17.00, despite the company meeting its financial goals and resolving patent litigation favorably. Meanwhile, Goldman Sachs maintained a Neutral rating with a $14.00 price target, acknowledging the company’s commercial success and operational management. Jefferies analysts, who hold a buy rating with an $18 price target, noted the company’s conservative approach to Pompe disease treatments, which could lead to steady performance improvements. Amicus Therapeutics is also focusing on business development as a potential growth area in the coming months.

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