JPMorgan maintains overweight rating on Protagonist stock

Published 02/06/2025, 16:18
JPMorgan maintains overweight rating on Protagonist stock

On Monday, JPMorgan analysts reaffirmed an Overweight rating for Protagonist Therapeutics stock (NASDAQ: NASDAQ:PTGX) with a price target of $66.00, well above the current trading price of $49.18. The stock has shown impressive momentum, delivering a 68.63% return over the past year. The reaffirmation follows the presentation of significant data at the American Society of Clinical Oncology (ASCO) conference.

Protagonist Therapeutics and its partner Takeda presented the pivotal Phase 3 Part 1a results of rusfertide in polycythemia vera (PV) at ASCO. The data, which was detailed during a call hosted by Protagonist, demonstrated the clinical benefits of rusfertide, despite a slightly higher proportion of sicker patients in the treatment arm. The company, currently valued at $3.04 billion, maintains a strong financial position with more cash than debt on its balance sheet.

The analysts highlighted the strength of the data, stating that it effectively addressed safety concerns that had lingered since the first quarter’s topline results. They noted that the findings could potentially change the current treatment paradigm for PV. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, though current valuations suggest the stock is trading above its Fair Value.

JPMorgan analysts emphasized rusfertide as a key component in Protagonist’s sum-of-the-parts valuation, estimating it at $18 per share. They projected risk-adjusted worldwide peak sales of $1.3 billion by 2034, suggesting that the recent data warrants further investor attention. With analyst targets ranging from $41 to $82, investors can access detailed valuation metrics and 16 additional ProTips through InvestingPro’s comprehensive research report.

In other recent news, Protagonist Therapeutics has garnered attention with several positive developments. H.C. Wainwright maintained a Buy rating with an $80 price target, citing promising results from the ICONIC-LEAD study of icotrokinra in adolescent patients with moderate-to-severe plaque psoriasis. The study showed significant improvements in IGA and PASI scores, with a favorable safety profile, positioning icotrokinra as a leading oral therapy. Meanwhile, BTIG reaffirmed its Buy rating and an $82 target, highlighting icotrokinra’s potential in the adolescent psoriasis market, where existing treatments lack approval for those under 18. BMO Capital Markets raised its price target to $72, maintaining an Outperform rating, driven by positive data for icotrokinra in both psoriasis and ulcerative colitis. Jefferies also kept a Buy rating with a $68 target, following successful UC trial results for icotrokinra, which met key clinical endpoints. Truist Securities increased their target to $76, acknowledging positive Phase 2b results for rusfertide in ulcerative colitis, and adjusting peak sales projections for its use in polycythemia vera and psoriasis. These recent updates reflect a broad confidence in Protagonist Therapeutics’ drug candidates and their market potential.

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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