Citizens maintains Madrigal stock rating with $485 price target on strong Rezdiffra momentum

Investing.com - Citizens has reiterated its Market Outperform rating and $485.00 price target on Madrigal Pharmaceuticals (NASDAQ:MDGL) following positive findings from its third-quarter physician survey. According to InvestingPro data, the stock is currently trading near its 52-week high of $463.62 and appears undervalued based on Fair Value analysis. The company has demonstrated remarkable revenue growth, with a surge of over 3,400% in the last twelve months.

The research firm reports that Madrigal’s Rezdiffra continues to show strong momentum in its commercial launch, with physicians prescribing the medication to more patients and more patients receiving paid drug. The survey also indicated that discontinuation rates remain low while expected utilization stays high. InvestingPro analysis shows the company maintains a healthy financial position with a strong current ratio of 5.11, indicating robust ability to meet short-term obligations.

Citizens projects approximately $7 billion in U.S. peak sales for Rezdiffra. For the third quarter of 2025, the firm estimates $240 million in sales, slightly below the consensus estimate of $244 million.

For the full year 2025, Citizens models $863 million in Rezdiffra sales compared to consensus estimates of $873 million. The firm noted competitive dynamics with Wegovy, which physicians expect to prescribe more following its formal approval.

Madrigal is expected to report its third-quarter 2025 financial results in the coming weeks, with Citizens particularly interested in management’s commentary on increased gross-to-net adjustments in the second half of 2025 and patient demand trends.

In other recent news, Madrigal Pharmaceuticals has been the focus of several analyst updates. Piper Sandler has raised its price target for the company to $540, highlighting the strong launch trajectory of Madrigal’s drug, REZDIFFRA, and its intellectual property protection extending to 2044. Truist Securities initiated coverage with a Buy rating and a price target of $580, citing high demand and potential upside from the recent approval of REZDIFFRA for treating metabolic dysfunction-associated steatohepatitis (MASH). Oppenheimer has also increased its price target to $590, following Novo Nordisk’s plans to acquire Akero Therapeutics, emphasizing the importance of combination approaches in MASH treatment. UBS maintained its Buy rating with a $523 price target, noting positive management outlook on the MASH market’s durability and growth potential. Canaccord Genuity also raised its price target to $526, maintaining a Buy rating based on confidence in REZDIFFRA’s strong efficacy and competitive edge. These developments reflect a broadly positive sentiment among analysts regarding Madrigal Pharmaceuticals’ prospects in the MASH market.

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