Protagonist Therapeutics stock price target raised to $112 by BMO Capital

Investing.com - BMO Capital has raised the price target on Protagonist Therapeutics (NASDAQ:PTGX) to $112.00 from $72.00 while maintaining an Outperform rating on the stock.

The price target increase follows reports of a potential acquisition of Protagonist Therapeutics by Johnson & Johnson, as reported by The Wall Street Journal on Friday.

PTGX shares closed at $87.00 on Friday, representing a 30% increase from the previous day’s close of $67.04, reflecting market reaction to the acquisition reports.

BMO Capital noted that while the share price movement clearly contemplates a potential takeover premium, the firm believes "the market is currently under-pricing what Protagonist could be worth."

The research firm’s analysis led to the significant price target increase, with BMO Capital stating "This protagonist’s story is not done yet" while reiterating its Outperform rating on the stock.

In other recent news, Johnson & Johnson has been ordered to pay $966 million by a Los Angeles jury in a baby powder case, where the company was found liable for a woman’s mesothelioma. This verdict is part of ongoing litigation concerning the alleged cancer-causing properties of the company’s baby powder products. On the pharmaceutical front, Johnson & Johnson reported promising results for its ulcerative colitis treatments. The company’s TREMFYA demonstrated significant clinical and endoscopic remission in a Phase 3 study, while its investigational oral drug icotrokinra met primary endpoints in a Phase 2b study, showing high response rates across various doses.

In terms of financial analysis, Goldman Sachs raised its price target for Johnson & Johnson to $212, maintaining a Conviction Buy rating, citing strong performance in the company’s Innovative Medicines segment. The firm expects the company to exceed consensus estimates for key products in its upcoming earnings report. Guggenheim has also reiterated its Buy rating on the stock with a price target of $206, reflecting a positive investor response since its initial upgrade. These developments highlight Johnson & Johnson’s ongoing legal challenges and advancements in its pharmaceutical endeavors.

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