Citi initiates Protagonist Therapeutics stock with buy rating on drug potential

Citi initiated coverage on Protagonist Therapeutics (NASDAQ:PTGX) Tuesday with a buy rating and a $72.00 price target, citing strong potential for the company’s drug candidates. The $3.39 billion market cap company has demonstrated impressive momentum, with shares surging 68% over the past year. According to InvestingPro data, the company maintains a GREAT financial health score of 3.69.

The research firm highlighted rusfertide, partnered with Takeda, for treating polycythemia vera (PV) and oral IL-23 (icotrokinra), partnered with Johnson & Johnson, for multiple inflammation indications as key drivers for the rating.

Citi acknowledged Protagonist shares have outperformed over the past three months, rising 40% compared to the S&P 500’s 2% gain, but believes rusfertide’s efficacy demonstrated in phase 3 trials indicates strong potential in PV patients where unmet needs remain despite therapeutic advancements.

The firm noted rusfertide’s potential to be added to existing therapies could expand its use, though cost-effectiveness remains a concern despite the drug’s excellent efficacy and safety profile.

Citi projects 2032 combined worldwide revenues of $700 million for Protagonist’s drugs, slightly above the consensus estimate of $680 million.

In other recent news, Protagonist Therapeutics has been in the spotlight following the presentation of significant data at the American Society of Clinical Oncology (ASCO) conference. The company shared promising results from the Phase 3 VERIFY study of rusfertide for polycythemia vera (PV), which has bolstered confidence in its potential as a standard treatment. Analysts from H.C. Wainwright reaffirmed their Buy rating with a price target of $80, citing the drug’s ability to reduce phlebotomy needs and improve quality of life. Meanwhile, Clear Street adjusted its price target to $62 from $65, maintaining a Buy rating, but noted concerns about the cost of introducing another therapy into the PV treatment regimen.

BTIG analysts also reiterated a Buy rating with an $82 price target, emphasizing rusfertide’s consistent benefits across various patient subgroups. The company plans to file a New Drug Application for rusfertide in the fourth quarter of 2025, potentially impacting its partnership with Takeda. JPMorgan maintained an Overweight rating with a $66 price target, highlighting rusfertide as a key component in Protagonist’s valuation and projecting peak sales of $1.3 billion by 2034.

Additionally, H.C. Wainwright maintained its Buy rating and $80 target due to positive results from the ICONIC-LEAD study for icotrokinra in treating plaque psoriasis. The study demonstrated significant improvements in adolescent patients and highlighted a preference for oral therapies over injectables. The anticipated NDA filing for icotrokinra in late 2025 further supports the firm’s positive outlook on Protagonist Therapeutics.

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