Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - BofA Securities has raised its price target on PTC Therapeutics (NASDAQ:PTCT) to $87.00 from $76.00 while maintaining a Buy rating on the stock. The company, currently valued at $5.2 billion, has demonstrated strong momentum with its stock trading near its 52-week high of $69.48. According to InvestingPro data, PTC Therapeutics maintains an EXCELLENT financial health score, with 12 key investment insights available to subscribers.
The price target increase follows a survey of 20 neurologists and geneticists who treat a total of 1,185 PKU patients, revealing strong early adoption trends for the company’s recently approved drug Sephience. According to the survey, 11 out of 20 respondents have already written 63 total prescriptions since the drug began shipping in mid-August.
BofA’s research indicates physicians expect to increase prescribing in the near term, with respondents projecting up to 204 scripts in the next 12 months. At peak usage, the surveyed healthcare providers estimate writing prescriptions for up to 43% of their PKU patients.
The investment bank continues to view Sephience as a blockbuster opportunity for PTC Therapeutics, modeling peak sales of $1.5 billion. For the third quarter, BofA projects Sephience sales of $7 million, slightly below consensus estimates of $7.4 million, while forecasting fiscal year 2025 sales of $26.4 million, above the consensus of $25.9 million.
BofA Securities has named PTC Therapeutics one of its top picks for 2025, with the strong Sephience launch driving the firm’s bullish investment thesis.
In other recent news, PTC Therapeutics has experienced significant developments regarding its drug applications and analyst ratings. The company received a Complete Response Letter (CRL) from the FDA for its vatiquinone application, intended for treating Friedreich’s ataxia, indicating that substantial evidence of efficacy was not demonstrated. As a result, the FDA has requested an additional study for a potential resubmission. Despite this setback, Truist Securities maintained its Buy rating on PTC Therapeutics, with a price target of $86, seeing the CRL as a "clearing event" for future launches. Jefferies also kept a Buy rating, adjusting its price target slightly to $63 from $64. In contrast, Goldman Sachs reiterated a Sell rating with a $44 target following the FDA’s decision. Meanwhile, BofA Securities has highlighted PTC Therapeutics as a top pick for 2025, maintaining a Buy rating and a $76 price target, buoyed by the potential of the company’s Sephience drug for phenylketonuria, which began shipping in mid-August. These developments reflect a mixed outlook from analysts amid regulatory challenges and future product potential.
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