Jefferies cuts Phathom Pharmaceuticals target to $13

Published 19/03/2025, 20:46
Jefferies cuts Phathom Pharmaceuticals target to $13

On Wednesday, Jefferies analyst Glen Santangelo revised the price target for Phathom Pharmaceuticals (NASDAQ:PHAT) shares, reducing it to $13 from the previous $17, while continuing to recommend the stock as a Buy. According to InvestingPro data, analyst targets for PHAT range from $12 to $28, with the stock currently trading around $6. Santangelo noted that the market appears to have already accounted for the worst-case scenario regarding loss of exclusivity (LOE) outcomes. The analyst believes that the potential for positive developments exists, citing three main factors that could drive the stock’s performance higher.

Firstly, Santangelo pointed to the continued progress in the launch of Phathom Pharmaceuticals’ products. Secondly, the outcome of a Citizen Petition, which could grant the company exclusive rights until 2032 for its EE/NERD treatment, is seen as a potential catalyst. Thirdly, advancements in the company’s pipeline are expected to contribute to the stock’s upside potential.

The analyst also observed that Phathom Pharmaceuticals’ stock has experienced a significant increase, rising more than 35% over the last three sessions. InvestingPro data shows the stock has gained 10.8% in the past week, though it remains down over 70% from six months ago. This recent surge suggests rising incremental interest in the company. InvestingPro subscribers have access to 8 additional key insights about PHAT’s performance and outlook. Furthermore, Santangelo speculated that the movement could indicate the possibility of broader corporate activities, such as mergers and acquisitions (M&A), taking shape.

While reiterating the Buy rating, Santangelo’s adjustment of the price target to $13 reflects a more conservative valuation in light of the current market price and the factors that could influence the stock’s future trajectory.

In other recent news, Phathom Pharmaceuticals reported strong financial results for Q4 2024, with net revenues reaching $29.7 million, marking an 81% increase from the previous quarter. The company achieved full-year revenues of $55.3 million, largely driven by the successful commercialization of its product, Voquezna™, for gastroesophageal reflux disease (GERD). Phathom Pharmaceuticals also maintains a robust gross margin of 87% and holds a solid cash position of $297 million. Analysts from H.C. Wainwright and Stifel have reaffirmed their Buy ratings on the company’s stock, each setting a price target of $28.00, citing effective market strategies and substantial insurance coverage for Voquezna™.

The company has successfully expanded its market reach, covering over 120 million commercially insured lives and securing contracts with major insurance plans. The number of prescribers has grown to over 20,000, indicating strong adoption beyond gastroenterology specialists to primary care physicians. Additionally, Phathom Pharmaceuticals is in a 180-day waiting period following its Citizen Petition, seeking a 10-year exclusivity period for Voquezna™. The outcome of this petition is anticipated to impact the company’s future market positioning and financial performance.

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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