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On Wednesday, Cantor Fitzgerald reiterated its Overweight rating on Ultragenyx Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:RARE) with a price target of $118.00, significantly above the current trading price of $41.85. The firm’s analyst, Kristen Kluska, provided insights based on investor conversations, valuing the company’s base commercial business at a minimum of $30. This valuation is bolstered by Ultragenyx’s MPS IIIA and GSDIa gene therapy programs, which are approaching the filing stage and are estimated to increase the company’s worth to approximately $35-$40. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $47 to $140.
Kluska highlighted the potential financial impact of three upcoming Priority Review Vouchers (PRVs), noting that each could add $1.50 to the company’s discounted cash flow (DCF) if they are received and sold. It’s important to note that Mereo BioPharma is entitled to a portion of the proceeds from one of the PRVs for setrusumab, if granted. The analyst expressed optimism about the stock’s prospects, suggesting that if the Osteogenesis Imperfecta (OI) treatment hits the market, Ultragenyx’s stock could trade closer to $80. InvestingPro data shows strong revenue growth of 29% over the last twelve months, though the company currently operates with moderate debt levels and maintains healthy liquidity with a current ratio of 2.37. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The analyst also emphasized the potential of Ultragenyx’s gene therapy programs to be meaningful in the market, especially for diseases that lack effective treatment options. While there are existing treatments for Wilson disease, Kluska pointed out that even capturing a small portion of this large market could be significant for the company.
Ultragenyx is recognized for its work in developing treatments for rare and ultra-rare diseases. The company’s pipeline of therapies includes those that address unmet medical needs, which, according to the analyst, provides additional optionality and value to the company’s portfolio. The reiterated rating and price target reflect a confidence in the company’s strategy and the anticipated success of its product candidates.
In other recent news, Ultragenyx Pharmaceutical Inc. reported fourth-quarter 2024 earnings that exceeded expectations, driven by strong sales from its Crysvita, Dojolvi, and Evkeeza product lines. The company’s total revenue for the quarter reached $164.9 million, surpassing estimates from both Goldman Sachs and Visible Alpha. Ultragenyx has projected its full-year 2025 revenue to be between $640 million and $670 million, an increase from the $560 million reported in 2024. Analysts from Canaccord Genuity raised their price target for Ultragenyx to $136, maintaining a Buy rating, following the positive earnings report.
In addition, the U.S. Food and Drug Administration (FDA) has accepted Ultragenyx’s Biologics License Application (BLA) for UX111, a gene therapy candidate for Sanfilippo syndrome type A, under Priority Review with a PDUFA action date set for August 18, 2025. Analysts from H.C. Wainwright reaffirmed their Buy rating with a $95 target, noting this development as a significant milestone. Cantor Fitzgerald also maintained its Overweight rating with a $118 target, highlighting the progress of Ultragenyx’s DTX301 program for Ornithine Transcarbamylase deficiency. Meanwhile, Truist Securities reiterated a Buy rating with a $140 target, expressing confidence in the company’s growth trajectory and potential for profitability by 2027.
Goldman Sachs continues to support Ultragenyx with a Buy rating and a $78 target, emphasizing the company’s promising pipeline, including the anticipated commercial launch of UX111 in the second half of 2025. The firm’s analysts also pointed to the ongoing Phase 3 Orbit study for setrusumab in osteogenesis imperfecta as a key focus, with interim results expected mid-2025. These developments reflect Ultragenyx’s strategic efforts to advance its pipeline and achieve financial goals in the coming years.
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