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On Wednesday, RBC Capital analysts raised the price target for PTC (NASDAQ:PTC) Therapeutics (NASDAQ:PTCT) stock from $58 to $60 while maintaining an Outperform rating. Trading at a P/E ratio of 6.22 and showing strong profitability with earnings per share of $7.51, the stock appears fairly valued according to InvestingPro analysis. This adjustment comes as the analysts anticipate positive developments ahead of the July 29 sepiapterin PDUFA date.
The analysts conducted a survey involving several payers who oversee 12.5 million U.S. lives. The findings suggest that insurers are unlikely to impose significant obstacles for patients with phenylketonuria (PKU) accessing sepiapterin. Although there may be a delay of a few months for formulary and access, the analysts noted a favorable stance from payers. The company’s strong financial position, with a current ratio of 3.89, suggests it has ample liquidity to support the product launch.
Feedback from recent surveys of doctors and the high demand highlighted by management support the analysts’ optimistic outlook. They project worldwide end-user sales of $152 million and $261 million for 2026 and 2027, respectively, surpassing consensus estimates of $111 million and $213 million. The analysts also anticipate peak sales reaching $700 million, with the potential for sustained performance. This aligns with InvestingPro data showing impressive revenue growth of 91% in the last twelve months. For deeper insights into PTC Therapeutics’ growth potential and 7 additional ProTips, explore the comprehensive Pro Research Report.
With expectations of a strong launch, the analysts see room for consensus numbers to improve, suggesting further upside potential for PTC Therapeutics shares. The company’s solid financial health score of 3.81 on InvestingPro supports this positive outlook.
In other recent news, PTC Therapeutics reported significant developments in its financial and strategic outlook. The company posted impressive first-quarter 2025 revenues of $1.176 billion, surpassing expectations with $190 million in net product and royalty revenue, and a substantial $986.2 million from a collaboration with Novartis (SIX:NOVN). This collaboration involved an upfront payment related to PTC518, contributing significantly to a net income of $866.6 million. Following these results, PTC Therapeutics raised its 2025 revenue guidance, adjusting the lower end from $600 million to $650 million, while maintaining the upper limit at $800 million.
Analyst firms have responded with varied ratings and price targets. BofA Securities upgraded PTC Therapeutics to a Buy, raising the price target to $68, based on optimistic projections for its phenylketonuria (PKU) program. Conversely, Barclays (LON:BARC) adjusted its target to $42, maintaining an Equalweight rating, despite the company’s strong revenue performance. RBC Capital reiterated an Outperform rating, citing potential benefits from FDA flexibility in approving Huntington’s Disease treatments. Meanwhile, Citi maintained a Neutral rating, reflecting cautious optimism around the PTC518 program’s alignment with FDA pathways.
The company’s cash reserves remain robust, bolstered by approximately $2 billion, which supports its valuation and strategic initiatives. Additionally, PTC Therapeutics anticipates the approval of Sepiapterin for PKU by the Prescription Drug User Fee Act deadline, with no advisory committee meeting required for vatiquinone in Friedreich’s ataxia. These developments highlight PTC Therapeutics’ ongoing efforts to advance its pipeline and financial performance.
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