Citizens JMP reiterates Madrigal stock with $443 target

Published 24/04/2025, 10:02
Citizens JMP reiterates Madrigal stock with $443 target

On Thursday, Citizens JMP maintained its Market Outperform rating on Madrigal Pharmaceuticals (NASDAQ:MDGL) shares, with a price target set at $443.00. Currently trading at $308.79, the $6.8 billion market cap company has seen analyst targets ranging from $239 to $539. The firm’s analyst highlighted the results of a recent physician survey, which indicated a seasonal dip in the first quarter of 2025 due to fewer patients on paid medication. Despite this, the long-term outlook for the company’s drug Rezdiffra is positive, with usage projections remaining high.

The analyst’s commentary noted that the initial data on patient persistence with the drug exceeded the firm’s expectations. This positive persistence check supports the continued confidence in Madrigal Pharmaceuticals’ prospects. The $443 price target is risk-adjusted and derived from a discounted cash flow (DCF) analysis, reflecting the firm’s assessment of the stock’s potential value. According to InvestingPro, the company maintains strong financial health with a current ratio of 6.1, indicating robust liquidity to support its operations.

Madrigal Pharmaceuticals specializes in the development of therapies that target liver diseases, with Rezdiffra being a key product in its portfolio. The company has been focusing on the treatment of nonalcoholic steatohepatitis (NASH), a liver condition that lacks FDA-approved drugs and represents a significant unmet medical need. With a beta of -0.69, the stock often moves independently of broader market trends, as noted in InvestingPro’s analysis (which offers 12 additional investment tips for subscribers).

The firm’s reiteration of the Market Outperform rating suggests that Madrigal Pharmaceuticals is well-positioned within the biopharmaceutical sector, particularly in the liver disease treatment market. The analyst’s outlook is based on the current and projected use of Rezdiffra, which is anticipated to drive the company’s growth.

Investors and stakeholders in Madrigal Pharmaceuticals can look to the maintained price target and rating as indicators of the company’s performance and potential in the competitive pharmaceuticals market. As of now, Madrigal Pharmaceuticals continues to focus on advancing its drug pipeline and expanding the reach of its treatments.

In other recent news, Madrigal Pharmaceuticals reported its fourth-quarter and full-year 2024 earnings, with a positive outlook shared by management during a conference call. UBS maintained a Buy rating on the company, setting a price target of $441, indicating confidence in Madrigal’s long-term potential in treating metabolic-associated steatohepatitis (MASH). Meanwhile, H.C. Wainwright also maintained a Buy rating, raising its price target to $405 due to an optimistic growth outlook. JMP Securities increased its price target to $443, following promising trial data on Madrigal’s drug Rezdiffra, which showed significant reductions in liver stiffness for cirrhotic patients.

In corporate developments, Madrigal Pharmaceuticals announced an executive transition, with Dr. Rebecca Taub moving to an advisory role in April 2025, while maintaining her position on the Board of Directors. The company also appointed Jacqualyn Fouse to its Board of Directors, succeeding Fred Craves, who will retire in July 2025. These leadership changes come as Madrigal continues to focus on expanding its clinical program and geographic reach. The recent developments underscore the company’s ongoing efforts in advancing treatments for liver diseases.

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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