Canaccord raises Ultragenyx target to $136, keeps Buy rating

Published 18/02/2025, 13:42
Canaccord raises Ultragenyx target to $136, keeps Buy rating

On Tuesday, Canaccord Genuity analysts updated their assessment of Ultragenyx Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:RARE) shares, increasing the price target to $136 from the previous $121 while reiterating a Buy rating on the stock. Currently trading at $42.49 with a market capitalization of $3.92 billion, InvestingPro analysis suggests the stock is trading below its Fair Value. The upgrade follows Ultragenyx’s reported earnings for the fourth quarter of 2024, which exceeded expectations on both revenue and profit, propelled by robust sales from its Crysvita, Dojolvi, and Evkeeza product lines.

The biopharmaceutical company, which specializes in rare disease treatments, has seen significant growth due to the sustained demand for its products, with revenue growing by 29% in the last twelve months. According to InvestingPro data, while the company operates with moderate debt levels, it currently faces profitability challenges. Canaccord’s analyst Whitney Ijem highlighted the company’s performance, stating that the results were driven by continued growth and demand in the company’s key franchises.

Looking ahead, Ultragenyx has a promising pipeline with three potential product launches on the horizon. The company has already filed a Biologics License Application (BLA) for UX111 for the treatment of MPSIIIA, with a Prescription Drug User Fee Act (PDUFA) decision and expected product launch in the second half of 2025. Additionally, BLA filings for DTX401 for GSD1a are anticipated by mid-2025, and Phase 3 data for setrusumab for osteogenesis imperfecta (OI) are expected either mid-year or by the end of 2025.

Ijem’s outlook for Ultragenyx is optimistic, with the expectation of the company achieving full-year GAAP profitability by 2027. The analyst’s commentary aligns with the broader Wall Street consensus, with analyst price targets ranging from $47 to $140. The reiterated Buy rating indicates confidence in the company’s future performance and the potential for investor returns. For a comprehensive analysis of Ultragenyx’s financial health, growth prospects, and detailed valuation metrics, investors can access the full Pro Research Report available on InvestingPro.

In other recent news, Ultragenyx Pharmaceutical Inc. has been the focus of multiple reports from leading financial firms. Cantor Fitzgerald has maintained its Overweight rating and $118.00 price target for Ultragenyx, highlighting the progress of the company’s DTX301 program and the potential of setrusumab’s upcoming clinical readouts. Goldman Sachs has echoed this positive sentiment, reiterating its Buy rating and setting a price target of $78.00, while emphasizing the company’s fourth-quarter total revenue of $164.9 million and full-year 2025 revenue guidance of between $640 million and $670 million.

Truist Securities has also maintained a Buy rating on Ultragenyx, with a price target of $140, noting the company’s path to GAAP profitability by 2027 and the progress of the Phase 3 OBRIT study. In addition, Ultragenyx has reported positive data on its experimental gene therapy, UX111, for Sanfilippo syndrome type A, showing significant cognitive improvements in patients. This data will be part of a Biologics License Application submitted to the FDA, with a decision expected in the second half of 2025.

Finally, Ultragenyx’s FY25 guidance indicates a 14-20% growth, surpassing both Goldman Sachs and Visible Alpha Consensus Data estimates. The company’s confidence in the Phase 3 Orbit study of setrusumab for the treatment of osteogenesis imperfecta and the potential commercial launch of gene therapy UX111 for Sanfilippo syndrome further underline these recent developments.

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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