Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Piper Sandler has reiterated an Overweight rating and $400.00 price target on Madrigal Pharmaceuticals (NASDAQ:MDGL) following a company breakfast meeting in Boston. The stock, currently trading at $355.08, shows potential upside according to InvestingPro Fair Value metrics, with analyst targets ranging from $266 to $567.
The research firm expressed confidence in the progress of REZDIFFRA’s MASH (metabolic dysfunction-associated steatohepatitis) launch, noting that management appears comfortable with current Street projections for the remainder of 2025 and beyond. This confidence is reflected in InvestingPro data showing 8 analysts recently revising their earnings estimates upward, with the company maintaining a strong financial health score.
Current analyst consensus estimates project sales of $230.8 million in the third quarter of 2025 and $263.1 million in the fourth quarter, putting the company on track for a full-year 2025 run rate of $831.1 million, according to FactSet data cited by Piper Sandler.
The firm addressed investor concerns about potential GLP-1 competition in the MASH market, stating that REZDIFFRA’s position as a liver-directed, well-tolerated oral therapy likely maintains its value proposition regardless of new market entrants.
Piper Sandler also highlighted Madrigal’s recent patent extension to 2045 as a significant development that increases the company’s runway in the MASH market and enables potential business development opportunities.
In other recent news, Madrigal Pharmaceuticals reported impressive second-quarter earnings, with Rezdiffra sales reaching $212.8 million. This figure represents a 55% increase from the previous quarter, significantly surpassing Goldman Sachs’ estimate of $150.9 million and the FactSet consensus of $159.4 million. The company attributes this strong performance to increased patient demand and greater prescriber penetration. Additionally, Madrigal Pharmaceuticals has secured a $500 million credit facility with Blue Owl Capital to advance its MASH pipeline. The financing includes a $350 million initial term loan and a $150 million delayed draw term loan facility available through December 2027. Furthermore, Madrigal has entered into a global license agreement with CSPC Pharmaceutical (TADAWUL:2070) Group for an oral GLP-1 receptor agonist, involving an upfront payment of $120 million and potential milestone payments up to $2 billion. Analyst firm Jefferies has raised its price target for Madrigal Pharmaceuticals to $502, following a patent extension for Rezdiffra. Citizens JMP has reiterated its Market Outperform rating and $470 price target, highlighting strong Rezdiffra uptake.
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