JPMorgan raises Ascendis Pharma target to $167, keeps Overweight

Published 29/01/2025, 16:30
JPMorgan raises Ascendis Pharma target to $167, keeps Overweight

On Wednesday, JPMorgan analyst Jessica Fye adjusted the price target for Ascendis Pharma (NASDAQ:ASND), a $7.74 billion biotech company, to $167.00, a slight increase from the previous $165.00, while reiterating the Overweight rating for the stock. The decision comes amid Ascendis Pharma’s stock performance, which has seen a decline of approximately 6% year-to-date. This drop contrasts with the broader biotech indexes, with XBI and NBI experiencing gains of 3% and 5%, respectively. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts setting targets ranging from $154 to $289.

Fye’s commentary highlighted the early U.S. launch metrics for Ascendis Pharma’s Yorvipath, which have exceeded expectations. The company has shown impressive revenue growth of 115% over the last twelve months, according to InvestingPro analysis. Despite the stock’s underperformance relative to its peers, the analyst remains optimistic about the company’s prospects. The anticipation surrounding phase III data for AZN’s eneboparatide is believed to be a contributing factor to the stock’s recent behavior.

The analyst suggests that the current market sentiment is temporary and anticipates a recovery for Ascendis Pharma’s shares once the phase III data is released. The focus is expected to shift back to the Yorvipath launch in the U.S., which is projected to be very robust.

Ascendis Pharma’s Yorvipath is a key product for the company, and its successful launch is critical for the stock’s future trajectory. The upcoming phase III data for eneboparatide is also a significant event for investors and could influence the company’s stock performance moving forward.

The Overweight rating indicates that JPMorgan views Ascendis Pharma’s stock as a favorable investment with potential for outperformance. The new price target of $167.00 reflects a modest increase but signals confidence in the company’s ability to navigate the current market challenges and capitalize on its product launches.

In other recent news, Ascendis Pharma has been the center of multiple developments. The company’s Skytrofa revenue forecast fell short of analyst expectations, prompting a downward revision of the full-year revenue guidance for 2024. Despite this, Ascendis Pharma also provided a preliminary estimate for the total full-year revenue for 2024, expected to be around €364 million, including a $100 million milestone payment from Novo Nordisk (NYSE:NVO).

Analyst firms have been active in their assessments of Ascendis Pharma. Goldman Sachs reaffirmed its Buy rating on Ascendis Pharma shares, citing the ongoing launch of its key PTH product and the potential of TransCon CNP opportunities. UBS initiated coverage on the company with a Buy rating, highlighting the potential for multiple product launches and a shift towards profitability. Jefferies raised the company’s stock price target to $194, following positive trial results for Skytrofa treatment. However, TD Cowen and Citi have adjusted their outlooks for Ascendis Pharma, lowering their price targets to $153 and $200 respectively, while maintaining Buy ratings.

Ascendis Pharma has experienced significant revenue growth of 115% in the last twelve months, despite remaining unprofitable. The company is also facing legal action by BioMarin Pharmaceutical (NASDAQ:BMRN) Inc. over a CNP patent in Europe. The launch of Yorvipath and the potential of TransCon CNP opportunities are expected to be key areas of interest for investors in the coming months.

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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