Street Calls of the Week
Investing.com - Oppenheimer has raised its price target on Madrigal Pharmaceuticals (NASDAQ:MDGL) to $590.00 from $500.00, while maintaining an Outperform rating on the stock. The company, currently trading at $428.30, has demonstrated remarkable performance with a 103% return over the past year. According to InvestingPro data, the stock has maintained strong momentum, often moving counter to broader market trends with a beta of -1.03.
The price target increase comes after Novo Nordisk announced plans to acquire Akero Therapeutics, which Oppenheimer believes highlights the growing importance of combination approaches in treating metabolic dysfunction-associated steatohepatitis (MASH). With a market capitalization of $9.55 billion and an impressive gross profit margin of 96.28%, Madrigal demonstrates strong commercial potential in this growing market.
Oppenheimer notes that while some investors appeared disappointed that Madrigal was not acquired, the firm sees favorable implications for the company, including Madrigal’s Rezdiffra being "already entrenched as a foundational therapy to be considered for any oral combination MASH regimens."
The research firm also points to Madrigal’s acquisition of GLP-1 as SYH2086, which it states "has all the properties required for a daily oral combo" as another positive factor in its assessment.
Oppenheimer’s analysis emphasizes three key dimensions for MASH investors: combination approaches with complementary mechanisms, portfolio combinations addressing various MASH patient populations, and corporate entity combinations to optimize capabilities and outcomes. InvestingPro analysis indicates the stock is currently undervalued, with 10+ additional ProTips and comprehensive financial metrics available to subscribers, including detailed insights into the company’s growth potential and market positioning.
In other recent news, Madrigal Pharmaceuticals has been the focus of several analyst updates and developments. H.C. Wainwright initiated coverage of the company with a Buy rating and a $500 price target, highlighting the strong performance of Rezdiffra, Madrigal’s FDA-approved MASH treatment. The company reported second-quarter 2025 sales of $212.8 million, with over 23,000 patients using the drug. Canaccord Genuity also raised its price target for Madrigal to $526, maintaining a Buy rating based on the competitive edge of Rezdiffra due to its efficacy and safety profile.
Additionally, TD Cowen increased its price target to $554 following the European Union’s approval of Rezdiffra. UBS reiterated its Buy rating and set a price target of $523, citing an optimistic outlook on the MASH market. On a different note, Cantor Fitzgerald maintained a Neutral rating, focusing on the company’s new weight-based dosing patent, which has sparked discussion among investors. These recent developments reflect growing confidence in Madrigal’s market position and product offerings.
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