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RBC Capital raised its price target on Insmed (NASDAQ:INSM) stock to $106 from $99 on Wednesday while maintaining an Outperform rating following positive pulmonary arterial hypertension (PAH) data for the company’s TPIP treatment. The stock, currently trading at $95.01, has shown remarkable momentum with a 23.4% gain in the past week. According to InvestingPro analysis, the company appears overvalued at current levels, though analysts maintain bullish targets ranging from $80 to $125.
The firm described the PAH data as a "home-run scenario," with pulmonary vascular resistance (PVR) and 6-minute walk distance (6MWD) measurements of 35% and 35.5 meters respectively, exceeding both RBC’s bullish expectations and key competitors’ results.
RBC noted it saw "no red flags" in the data, citing strong efficacy, a tolerable profile, and robust statistics. The firm increased its probability of success for TPIP to 70% and projected revenue of $2.2 billion by 2034 for the treatment.
The analyst’s report indicated the positive data would likely shift investor focus toward Insmed’s upcoming brensocatib launch in August, which RBC estimates has over $6 billion worldwide potential, and possible merger and acquisition opportunities.
RBC also highlighted potential further upside for Insmed shares from what it expects to be a successful brensocatib launch, along with mid-to-long term opportunities from the company’s Arikayce treatment and TPIP development program.
In other recent news, Insmed has garnered significant attention following the release of positive Phase 2 results for its treprostinil palmitil inhalation powder (TPIP) in treating pulmonary arterial hypertension (PAH). Several financial firms have responded by raising their price targets for Insmed. H.C. Wainwright increased its target to $120, citing the promising Phase 2B topline results. Mizuho (NYSE:MFG) and Evercore ISI both raised their targets to $110, with Mizuho highlighting the potential for TPIP to become a new standard of care in PAH. BofA Securities adjusted its target to $109, emphasizing TPIP’s potential as a foundational treatment in PAH and PH-ILD. Stifel also raised its price target to $110, noting TPIP’s significant reduction in pulmonary vascular resistance and its potential to surpass sales of Insmed’s other pipeline asset, brensocatib. These developments underscore the growing confidence among analysts in Insmed’s prospects, both in terms of its current pipeline and its potential for future growth.
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