JPMorgan raises PTC Therapeutics stock price target to $68 on Sephience demand

Published 07/08/2025, 14:56
JPMorgan raises PTC Therapeutics stock price target to $68 on Sephience demand

Investing.com - JPMorgan raised its price target on PTC (NASDAQ:PTC) Therapeutics (NASDAQ:PTCT) to $68.00 from $67.00 on Thursday, while maintaining an Overweight rating on the stock. The company, currently valued at $4.01 billion with a P/E ratio of 6.64, has demonstrated remarkable revenue growth of 91% over the last twelve months.

The investment bank cited "solid demand for Sephience in PKU" based on recent checks with physicians and payer access experts. JPMorgan believes Sephience’s trajectory and patient stickiness will differ from historical performance of comparable treatments Kuvan and Palynziq. According to InvestingPro data, analysts anticipate continued sales growth in the current year, supporting this positive outlook.

JPMorgan’s model conservatively assumes approximately $1.2 billion in worldwide peak sales for Sephience, with $750 million coming from the U.S. market. This projection attributes $27 per share to PTC Therapeutics’ valuation. The company’s strong financial health score of "EXCELLENT" on InvestingPro suggests solid fundamentals supporting these growth projections.

The firm stated that the Sephience franchise will "secure the next chapter of growth" for PTC Therapeutics and provides "a solid floor to valuation" for the company.

JPMorgan noted that potential upside surprises could come from FA and Translarna, though these factors are not currently incorporated into their December 2025 price target.

In other recent news, PTC Therapeutics announced that the U.S. Food and Drug Administration (FDA) has approved its drug Sephience (sepiapterin) for the treatment of phenylketonuria (PKU). This approval includes a broad label for treating both adult and pediatric patients aged one month and older, specifically those with sepiapterin-responsive PKU, in conjunction with a phenylalanine-restricted diet. Following this announcement, several analyst firms adjusted their price targets for PTC Therapeutics. Cantor Fitzgerald raised its price target to $120, maintaining an Overweight rating, while Truist Securities increased its target to $86, keeping a Buy rating. UBS also raised its target to $80, continuing its Buy rating on the stock. The FDA approval has been a significant development for PTC Therapeutics, allowing the company to address a wide range of disease subtypes across various age groups. These updates reflect the positive reception of the FDA’s decision and the potential market impact of Sephience.

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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