Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Redburn-Atlantic initiated coverage on BridgeBio Pharma (NASDAQ:BBIO) stocks with an optimistic outlook, assigning a Buy rating and setting a price target of $50.00. The firm’s analyst Joshua Smith highlighted the potential 38% upside compared to the current stock price of $35.11, driven by the company’s rapid progress with its Attruby rollout. According to InvestingPro data, analyst targets range from $36 to $95, with a strong consensus Buy recommendation.
BridgeBio Pharma’s focus has been on the deployment of Attruby, which according to Smith, is advancing quicker than some market observers had anticipated. With impressive revenue growth of over 2,200% in the last twelve months to $221.9 million, the upcoming first quarter earnings report, due on May 1st, is expected to serve as an indicator of Attruby’s sales pace and will offer insights into the net pricing derived from its sales figures.
Smith noted that earnings are forecasted to remain negative until 2028, aligning with the consensus due to the necessary investments in the development of the company’s pipeline. Despite the short-term earnings outlook, Redburn-Atlantic sees BridgeBio as a medium-term top-line growth story, with Attruby sales being the primary growth driver until the company’s pipeline matures and more products reach the commercialization stage.
The firm anticipates that as the Attruby launch trajectory becomes clearer, the market’s focus will likely shift towards BridgeBio’s pipeline. Upcoming data readouts are expected to influence investor sentiment towards the company’s stock. Redburn-Atlantic’s coverage initiation and price target suggest confidence in BridgeBio Pharma’s strategy and future prospects.
In other recent news, BridgeBio Pharma has received approval from the Japanese Ministry of Health for its drug acoramidis, branded as Beyonttra, for treating transthyretin-mediated amyloid cardiomyopathy (ATTR-CM). This approval follows promising results from both a Japanese Phase 3 study and the global ATTRibute-CM Phase 3 trial, which showed significant reductions in cardiovascular hospitalizations and mortality. As part of this development, BridgeBio will receive a $30 million milestone payment from Alexion (NASDAQ:ALXN), AstraZeneca (NASDAQ:AZN) Rare Disease, and is set to earn royalties from the drug’s sales in Japan. In financial news, BridgeBio announced a $500 million convertible senior notes offering to refinance existing debt, which aims to lower interest expenses and increase operational flexibility. Cantor Fitzgerald has maintained its Overweight rating on BridgeBio, with a $95 price target, citing a detailed understanding of Medicare drug coverage and its implications for the company. Meanwhile, Deep Track Capital has nominated four candidates for the board of Dynavax (NASDAQ:DVAX) Technologies, advocating for strategic improvements and better shareholder representation. Deep Track criticized Dynavax’s financial decisions, particularly the issuance of convertible notes, and pushed for a board revamp to optimize the company’s potential. These developments highlight the ongoing strategic and financial maneuvers within both companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.