Citi maintains neutral rating on PTC Therapeutics stock

On Monday, Citi analysts maintained a Neutral rating on PTC Therapeutics (NASDAQ:PTCT) stock, keeping the price target steady at $40.00. According to InvestingPro data, analyst targets for the stock range from $40 to $112, with the company showing an excellent financial health score. The stock currently trades at $48.89, near its Fair Value. The decision reflects the ongoing evaluation of PTC518, an oral splicer for Huntington’s disease, and its alignment with the FDA’s accelerated approval pathway.

Analysts highlighted the FDA’s acknowledgment of the ENROLL-HD registry, which is also used by PTC (NASDAQ:PTC) in its phase 2 PIVOT-HD 24-month comparative analysis. They noted that the interim data from PIVOT-HD demonstrated a statistically significant slowing on the composite Unified Huntington’s Disease Rating Scale (cUHDRS) for PTC518 compared to a propensity-matched natural history cohort.

The FDA’s requirement for a three-year change in cUHDRS as the primary efficacy analysis for the AMT-130 gene therapy’s Biologics License Application (BLA) was also noted. Current data for PTC518 may not meet the criteria for an accelerated approval path, according to the analysts.

Citi analysts’ report suggests that while there is potential in aligning with the FDA’s pathway, PTC Therapeutics may need further data to support its application for accelerated approval. The Neutral rating and $40 price target reflect this cautious outlook. For deeper insights into PTC Therapeutics’ financial health and growth prospects, including 7 additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, PTC Therapeutics reported robust financial results for the first quarter of 2025, with total revenues reaching $1.176 billion, largely due to a significant upfront payment from Novartis (SIX:NOVN) related to a collaboration. This payment contributed to a net income of $866.6 million, or $10.04 per share on a diluted basis, despite a decline in the core business revenue. The company also exceeded expectations with a net product and royalty revenue of $190 million, surpassing the consensus estimate of $168 million. PTC Therapeutics raised its 2025 revenue guidance to a range of $650-800 million, driven by its Duchenne muscular dystrophy franchise.

Analysts have been adjusting their outlooks for PTC Therapeutics. BofA Securities upgraded the stock to a Buy rating, raising the price target to $68, based on optimistic projections for the company’s phenylketonuria (PKU) program. Barclays (LON:BARC), however, reduced the price target to $42 while maintaining an Equalweight rating, despite acknowledging the company’s strong first-quarter revenue performance. JPMorgan also adjusted its price target to $67, maintaining an Overweight rating, noting the potential for favorable regulatory outcomes in the coming months.

RBC Capital continues to maintain an Outperform rating with a $58 price target, citing the potential for PTC’s ’518 program in Huntington’s Disease. The company is approaching key Prescription Drug User Fee Act (PDUFA) dates for its pipeline products, which could significantly impact future developments. These recent developments highlight the mixed analyst sentiment and the strategic financial positioning of PTC Therapeutics in the biopharmaceutical sector.

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