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On Monday, Cantor Fitzgerald reiterated its Overweight rating on PTC (NASDAQ:PTC) Therapeutics (NASDAQ:PTCT) with a steady price target of $113.00. The stock, currently trading near its 52-week high of $55.41, has shown remarkable momentum with a 73% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels, with technical indicators suggesting overbought conditions. The firm’s analyst, Kristen Kluska, updated the financial model for the company to reflect the actual revenues reported for the quarter ending December 31, 2024, aligning with the previously announced preliminary figures.
PTC Therapeutics, a biopharmaceutical company with a market capitalization of $4.36 billion and annual revenue of $807 million, has recently provided its financial guidance for 2025, prompting Cantor Fitzgerald to adjust its expectations for the company’s operating expenses and revenues. The updated estimates now fall within the range provided by PTC Therapeutics, although this led to a projection of slightly lower revenues for the company. InvestingPro data reveals that despite current losses (EPS of -$4.73), the company maintains a healthy liquidity position with a current ratio of 2.35.
The adjustments made by Cantor Fitzgerald to its model for PTC Therapeutics are based on the company’s performance and the guidance it has issued for the upcoming year. This suggests that while the analyst remains positive on the stock’s potential, there is recognition of the challenges and changes in the financial outlook.
Kluska’s commentary provided insight into the rationale behind the maintained rating and price target. "We are updating our PTCT model for the quarter ending December 31, 2024. There are no changes to our 12-month PT of $113. The company previously reported preliminary revenues for 2024; we changed to the actuals reported. We have made adjustments to our operating expenses and revenues based on 2025E guidance (we updated our numbers to be within the range guided, leading to slightly lower revenues) which results in the changes to our model."
The Overweight rating indicates that Cantor Fitzgerald believes PTC Therapeutics stock will outperform the average return of the stocks the analyst covers over the next 12 months. The $113.00 price target suggests a level of confidence in the company’s ability to grow and generate returns for investors. With the next earnings report scheduled for April 24, 2025, investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, PTC Therapeutics reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -$0.85, which was below the forecasted -$0.79. However, the company’s revenue for the quarter was $213 million, aligning closely with expectations. For the full year, PTC Therapeutics exceeded its revenue guidance, achieving $877 million, aided by significant contributions from its DMD franchise. The company also maintains a strong cash position, bolstered by a $1 billion payment from Novartis (SIX:NOVN). In terms of regulatory developments, PTC Therapeutics submitted four FDA approval applications in 2024, with one already approved. Additionally, the company has provided revenue guidance for 2025 between $600 million and $800 million, anticipating several product launches and regulatory decisions. There were no recent analyst upgrades or downgrades reported for PTC Therapeutics.
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