Redburn initiates Ionis stock with Neutral, sets $39 target

On Monday, Redburn-Atlantic began covering Ionis Pharmaceuticals (NASDAQ:IONS) with a Neutral rating and a price target of $39.00. Joshua Smith, an analyst at Redburn-Atlantic, stated that the target suggests a 23% potential upside from the current share price. According to InvestingPro data, the stock is currently trading near its 52-week low of $30.23, with analyst targets ranging from $37 to $78. The focus of the analysis was on the potential of Ionis’ drug candidate Wainua for the treatment of ATTR-CM, a form of cardiomyopathy.

Smith noted that while the opportunity for Wainua in treating ATTR-CM is substantial, further data is necessary to fully assess its potential. He indicated that his estimates for the company’s global risk-adjusted royalty revenue are approximately 20% lower than the market consensus for the years 2026 to 2030. The company, with a market capitalization of $4.95 billion, reported revenue of $705.14 million in the last twelve months, though it remains unprofitable with significant R&D investments. Despite this cautious stance on one aspect of the company’s pipeline, Smith acknowledged the significant opportunity for Ionis in treating ATTR-PN, aligning with the consensus view for the forecast period.

Ionis Pharmaceuticals is engaged in the development of RNA-targeted therapies. ATTR-CM and ATTR-PN are diseases related to transthyretin-mediated amyloidosis, which can affect the heart and peripheral nerves, respectively. Wainua is one of the drugs in Ionis’ pipeline that aims to address these conditions.

The launch of coverage by Redburn-Atlantic provides investors with an additional perspective on Ionis Pharmaceuticals’ stock. The Neutral rating indicates a stance of watchful optimism, awaiting further evidence to support a more definitive outlook on the company’s financial prospects and the success of its drug development programs.

Ionis’ stock performance and valuation will likely continue to be influenced by updates on its clinical trials, regulatory milestones, and the evolving competitive landscape in the pharmaceutical industry. As Ionis progresses with its drug development efforts, investors and analysts alike will be monitoring the emerging data closely to gauge the company’s potential for growth and profitability. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 8.47 and operates with moderate debt levels. For deeper insights into Ionis’ financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with actionable intelligence for smarter investment decisions.

In other recent news, Ionis Pharmaceuticals reported total revenue of $705 million, surpassing both Bernstein’s and consensus estimates by 13% and 15%, respectively. Their earnings per share (EPS) of ($0.43) also exceeded projections by 51% and 53%. This strong financial performance was largely driven by robust R&D revenue. Ionis has also announced a licensing agreement with Sobi, granting them exclusive rights to commercialize olezarsen outside the U.S., Canada, and China. The drug, branded as TRYNGOLZA™, received FDA approval in December 2024 for treating familial chylomicronemia syndrome (FCS).

Furthermore, Oppenheimer maintained an Outperform rating on Ionis with a price target of $78.00, highlighting a partnership with Ono Pharmaceuticals to develop sapablursen. Meanwhile, UBS maintained a Neutral rating with a price target of $45.00 following a meeting with Ionis management. Ionis also gained EU approval for WAINZUA, a treatment for hereditary transthyretin-mediated amyloidosis, further expanding its product portfolio. Bernstein, however, adjusted Ionis’ stock price target to $43.00 from $51.00, maintaining a Market Perform rating due to skepticism around certain speculative assets and AP risk reduction.

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