Raymond James initiates Ascendis Pharma stock with Strong Buy rating

Investing.com - Raymond James initiated coverage on Ascendis Pharma (NASDAQ:ASND) with a Strong Buy rating and a price target of $271.00 on Thursday. The stock, currently trading near its 52-week high of $216.45, has delivered an impressive 59% return over the past year according to InvestingPro data.

The research firm expressed confidence in Ascendis Pharma’s growth trajectory, projecting the company will achieve more than $4 billion in annual revenue. Raymond James specifically modeled approximately $4.6 billion in total revenues by 2035. This optimistic outlook aligns with InvestingPro data showing strong revenue growth of 54.5% in the last twelve months, with analysts anticipating continued sales growth.

The revenue breakdown includes approximately $3.3 billion from Yorvipath (TransCon PTH) for hypoparathyroidism, around $750 million from TransCon CNP for achondroplasia, and approximately $550 million from Skytrofa.

Raymond James noted potential upside beyond these base case projections through indication expansion and favorable competitive and commercial outcomes in the future.

The firm believes upcoming commercial and competitive updates over the next 12-24 months will provide clarity on its base case assumptions and the likelihood of achieving upside scenarios, suggesting a 4-5x multiple on projected revenues represents significant upside from current share prices.

In other recent news, Ascendis Pharma reported its Q2 2025 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share of -0.82, significantly outperforming the forecasted -1.27, marking a 35.43% surprise. Revenue also surpassed projections, reaching €158 million compared to the expected €142.38 million, an 11.01% surprise. In addition to their earnings report, Ascendis Pharma submitted a Marketing Authorisation Application to the European Medicines Agency for TransCon CNP, a treatment for children with achondroplasia. This application is supported by data from multiple clinical trials, including the pivotal ApproaCH Trial, which demonstrated favorable tolerance. Cantor Fitzgerald recently raised its price target for Ascendis Pharma to $254, maintaining an Overweight rating, while UBS reiterated its Buy rating with a $307 price target. BofA Securities also continues to support Ascendis Pharma as one of its top picks for 2025, citing strong initial results from the global launch of Yorvipath for hypoparathyroidism. These developments reflect the company’s ongoing strategic initiatives and market positioning.

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