Intel stock extends gains after report of possible U.S. government stake
On Thursday, H.C. Wainwright made adjustments to its stance on two companies within the pharmaceutical and steel sectors. For Madrigal Pharmaceuticals (NASDAQ:MDGL), the firm’s analyst, Ed Acre, increased the price target to $405 from the previous $400, while maintaining a Buy rating on the stock. The change reflects a positive outlook on the company’s growth prospects. According to InvestingPro data, MDGL has shown strong momentum with a 15.33% year-to-date return and currently trades near its 52-week high of $377.46. The company maintains a robust financial position with a current ratio of 6.1, indicating strong liquidity.[Interested in deeper insights? InvestingPro subscribers have access to 12 additional exclusive tips and comprehensive financial metrics for MDGL.]
In the steel industry, the firm altered its rating for Steel Dynamics (NASDAQ:STLD), upgrading the stock to Peer Perform from Underperform. The revision is based on updated steel price forecasts that take into account the anticipated impact of President Trump’s proposed 25% tariffs on all steel imports. The analysts now expect 2025 estimated Hot-Rolled Coil (HRC) prices to rise to $825 per short ton, up from the earlier forecast of $750.
The report suggests that while the price increase for steel may be temporary, as domestic production and certain imports compensate for the reduction in foreign steel, the expected near-term price strength warrants a more positive rating. Additionally, Steel Dynamics’ free cash flow (FCF) is projected to improve significantly in 2026 following a period of substantial capital expenditures on new projects.
For Steel Dynamics, H.C. Wainwright forecasts a free cash flow of $511 million in 2025, which would represent a modest yield of approximately 3%. However, the outlook for 2026 is more robust, with a projected FCF of $1.16 billion and an attractive yield of 6%, as the company completes its known capital projects. This financial improvement is a key factor behind the upgrade in the stock rating.
In other recent news, Madrigal Pharmaceuticals has reported significant financial and clinical advancements. The company announced its fourth-quarter 2024 earnings, revealing a revenue of $103.32 million, surpassing the consensus estimate of $87.7 million. This marks a substantial increase from the previous year when Madrigal had no product sales. Additionally, Madrigal’s Rezdiffra, the first FDA-approved treatment for MASH, showed promising results in a two-year open-label study, with 51% of patients achieving a 25% or greater reduction in liver stiffness.
Analysts have responded positively to these developments, with Citi raising its price target for Madrigal to $469, citing strong sales performance. JMP Securities also increased its price target to $443, highlighting the promising trial data for Rezdiffra. Meanwhile, TD Cowen maintained a $390 price target, reflecting confidence in Madrigal’s revenue achievements, which hit the upper end of their preannounced range.
Madrigal is also preparing for a potential European expansion, anticipating a regulatory decision from the European Medicines Agency by mid-2025. If approved, the company plans to launch Rezdiffra in Germany later that year. These developments underscore Madrigal’s progress in addressing the unmet needs of NASH patients and its strategic positioning for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.