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On Thursday, PTC (NASDAQ:PTC) Therapeutics (NASDAQ:PTCT) stock (currently trading at $42.58) received an upgrade from BofA Securities, moving from a Neutral to a Buy rating, with the price target being increased to $68 from $55. According to InvestingPro data, analyst price targets for the company range from $40 to $112, suggesting significant potential upside. The positive adjustment comes as BofA Securities analysts revise their model estimates for PTC Therapeutics’ phenylketonuria (PKU) program, now forecasting $788 million in peak risk-adjusted sales, which constitutes 30% of their net present value (NPV) estimate for the company. This optimism is reflected in broader analyst sentiment, with InvestingPro reporting that two analysts have recently revised their earnings estimates upward for the upcoming period, despite the stock’s 14% decline over the past week.
The analysts’ optimism is partly based on recent checks with key opinion leaders (KOLs) in the field of PKU, a rare metabolic disease. These checks suggest that PTC Therapeutics’ treatment, sepiapterin, is likely to gain approval due to the high unmet need for treatment in this area. Despite varying expectations for usage, there is a general consensus that the initial use will be among standard of care (SoC) non-responders, who represent approximately 70% of the PKU patient population.
BofA Securities plans to continue consulting with KOLs in the lead-up to the July 29, 2025, Prescription Drug User Fee Act (PDUFA) date, in order to better understand the potential dynamics of the drug’s uptake and early coverage by payers. Additionally, the firm points to PTC Therapeutics’ robust financial position, with net cash of around $1.7 billion, and its current commercial sales of $806.78M as underpinning factors that provide a solid foundation for the company’s valuation, contributing $31 per share to the price objective. InvestingPro analysis confirms the company’s strong liquidity position, with a healthy current ratio of 2.35, indicating its ability to meet short-term obligations effectively. Get access to more detailed financial metrics and 5 additional ProTips by subscribing to InvestingPro.
In other recent news, PTC Therapeutics has reported its first-quarter 2025 revenue, which exceeded expectations with a total of $190 million. This figure surpassed the consensus estimate of $168 million and was largely driven by the success of Translarna and Emflaza. The company also reported a robust collaboration revenue of $986.2 million, primarily from an upfront payment by Novartis (SIX:NOVN) related to the PTC518 collaboration. Barclays (LON:BARC) adjusted its price target for PTC Therapeutics from $56.00 to $42.00 but maintained an Equalweight rating, while William Blair maintained an Outperform rating due to the strong financial performance. JPMorgan decreased its price target to $67.00 but maintained an Overweight rating, citing the company’s earnings per share of $11.09, which was largely attributed to collaboration revenue. Additionally, Citi upgraded the stock rating from Sell to Neutral, adjusting the price target to $40.00. Upcoming regulatory decisions, including the PDUFA dates for Sephience and vatiquinone, are anticipated to be significant events for PTC Therapeutics. The company concluded the quarter with over $2 billion in cash reserves, positioning it well for future growth and strategic initiatives.
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