US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Wednesday, RBC Capital Markets began coverage on Ascendis Pharma (NASDAQ:ASND) with an Outperform rating and a price target of $205.00. Currently trading at $153.92, the stock has shown impressive momentum with an 11.67% gain over the past week, outperforming the XBI. RBC Capital sees further potential for growth. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong price momentum metrics. The optimism is based on comprehensive research, including a proprietary global survey of 50 endocrinologists, which indicates that Ascendis Pharma’s Yorvipath may achieve annual sales of €3 billion, surpassing the consensus estimate of €2 billion.
The analysts at RBC Capital highlighted Ascendis Pharma’s advantageous position as the first to market, which could be pivotal given the competition from AstraZeneca (NASDAQ:AZN) is not viewed as significantly differentiated and Merck (NSE:PROR)’s (MBX) competitor product is considerably lagging. The company’s strong market position is reflected in its impressive 87.83% gross profit margin and 36.34% year-over-year revenue growth. Additionally, Ascendis Pharma’s treatment for achondroplasia is considered best-in-class with a potential peak sales of €1 billion. The firm’s current drug, Skytrofa, is already generating €200 million in sales and is seen as providing a stable valuation floor.
Ascendis Pharma’s platform is not only seen as de-risked but also versatile, with potential applications beyond rare endocrine diseases. This is exemplified by the company’s recent obesity deal with Novo Nordisk (NYSE:NVO), a fellow Danish pharmaceutical company. While the company reported a net loss of $391.68 million in the last twelve months, InvestingPro analysis reveals 8 additional key insights about the company’s financial health and growth potential. RBC Capital’s analysts believe that despite debates on valuation, the recent macro-driven pullback in Ascendis Pharma’s stock price presents a buying opportunity. They anticipate the upcoming launch of Yorvipath to exceed expectations and pave the way for profitability, possibly within the current year.
Furthermore, Ascendis Pharma is considered a prime candidate for mergers and acquisitions, as suggested by a recent survey. The analysts note that the current market trend favors commercially successful names, which supports their positive outlook for the company. With the new Outperform rating and speculative risk designation, RBC Capital Markets has set a price target of $205.00 for Ascendis Pharma shares, aligning with the broader analyst consensus that shows significant upside potential. For a deeper understanding of Ascendis Pharma’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ascendis Pharma’s financial and product performance has drawn attention from several analyst firms. Cantor Fitzgerald raised its price target to $200, maintaining an Overweight rating, following Ascendis Pharma’s stronger-than-expected fourth-quarter earnings for 2024. The firm cited impressive prescription numbers for Yorvipath as a key factor in their revised revenue projections. Similarly, Evercore ISI increased its price target to $260, maintaining an Outperform rating, due to positive developments and the company’s potential for significant value growth in 2025.
TD Cowen also adjusted its outlook, increasing the price target to $162 while keeping a Buy rating. The firm’s analysis highlighted the strong launch of Yorvipath and the stabilization of Skytrofa’s pricing. Stifel analysts raised their price target to $212, noting the robust performance of Yorvipath in the U.S. market since its launch. UBS reaffirmed its Buy rating with a $196 target, projecting strong sales growth for Yorvipath as reimbursement processes improve.
Ascendis Pharma is actively working on regulatory filings for its TransCon CNP product, with submissions planned throughout 2025. The company is also preparing for Skytrofa’s market expansion, with a key regulatory date set for July 27, 2025. These developments reflect a positive outlook from analysts on Ascendis Pharma’s growth trajectory and strategic positioning in the pharmaceutical industry.
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