TSX lower after index logs fresh record closing high
Investing.com - BofA Securities has reiterated its Buy rating and $76.00 price target on PTC Therapeutics (NASDAQ:PTCT), naming it one of its top picks for the remainder of 2025. The company’s stock has shown remarkable momentum, gaining 16% in the past week and currently trading near its 52-week high of $58.73.
The firm maintains a bullish outlook on the company’s Sephience drug for phenylketonuria (PKU) following its approval with a broad label in late July. PTC Therapeutics began shipping commercial product in mid-August and plans to provide early launch metrics in future earnings calls.
Initial key opinion leader checks indicate strong demand for Sephience due to its differentiated clinical profile compared to currently approved therapies. BofA Securities notes high focus on early payor coverage dynamics, which it considers a key determinant of the launch trajectory.
The investment bank views Sephience as a blockbuster opportunity for PTC Therapeutics and models peak sales of $1.3 billion, equivalent to $35 per share. The firm’s $76 price target reflects this commercial potential.
BofA also sees additional upside potential within PTC’s pipeline, particularly highlighting PTC518 for Huntington’s disease, for which the company is targeting accelerated approval and has scheduled an FDA meeting in the fourth quarter. With a P/E ratio of 7.07 and analysts forecasting 115% revenue growth for FY2025, InvestingPro analysis suggests the stock is currently undervalued.
In other recent news, PTC Therapeutics received a Complete Response Letter (CRL) from the FDA regarding its New Drug Application for vatiquinone, intended for treating Friedreich’s ataxia. The FDA indicated that substantial evidence of efficacy was not demonstrated and requested an additional well-controlled study before reconsidering the application. This regulatory setback aligns with previous feedback from both the FDA and the European Medicines Agency. Despite the CRL, Truist Securities maintained its Buy rating and $86 price target, viewing the event as a precursor to upcoming regulatory updates. Jefferies also maintained a Buy rating but lowered its price target from $64 to $63. Similarly, BofA Securities lowered its price target from $82 to $76 while maintaining a Buy rating. Meanwhile, Goldman Sachs reiterated a Sell rating with a $44 price target. These developments reflect varying analyst perspectives following the FDA’s decision.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.