Stifel maintains Buy on Ascendis Pharma stock, target at $212

On Tuesday, Stifel analysts reiterated their Buy rating on Ascendis Pharma (NASDAQ:ASND) shares, with a steady price target of $212.00. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $196 to $291, suggesting significant upside potential from current levels around $162. The endorsement comes as Ascendis Pharma’s management expresses strong optimism regarding the progress of Yovipath, their treatment for hypoparathyroidism. According to the analysts, the company anticipates a steady influx of new users in the United States, with no signs of a slowdown in the near future. This optimism is supported by the company’s impressive 85.3% gross profit margin and 12% year-over-year revenue growth.

Ascendis Pharma is actively pursuing strategies to accelerate the conversion of patients to their paid drug program, aiming to reduce the conversion time to approximately two weeks within the next year. This initiative is part of the company’s broader efforts to enhance patient access and streamline treatment processes.

In addition to advancements with Yovipath, the company is also focused on TransCon CNP, a therapy designed to maintain high levels of CNP exposure, which has shown promise in delivering significant clinical benefits beyond growth in height. The upcoming COACH study results are highly anticipated, as they may reveal additional advantages for patients, particularly in achieving catch-up growth when used in combination with Skytrofa. Ascendis Pharma’s leadership has indicated that an average growth velocity (AGV) of 8-9cm would mark a considerable improvement over standalone CNP treatment.

The positive outlook shared by Ascendis Pharma’s management is based on the substantial unmet need within the targeted patient population. The company’s commitment to improving treatment outcomes and access continues to drive their research and development efforts. With these ongoing initiatives, Ascendis Pharma is working to solidify its position in the market and deliver value to both patients and investors. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, though investors should note it currently trades near its Fair Value. For deeper insights into Ascendis Pharma’s financial metrics and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Ascendis Pharma has reported promising results from its ApproaCH Trial, focusing on TransCon CNP for children with achondroplasia. The trial showed significant improvements in growth and bone structure without serious adverse events, marking a positive development for the company. Additionally, Ascendis Pharma’s Phase 2 PaTH Forward Trial for hypoparathyroidism demonstrated sustained benefits in long-term treatment with TransCon PTH, with most participants maintaining normal calcium levels and improved kidney function. Analyst firms have also weighed in on Ascendis Pharma’s prospects. Cantor Fitzgerald maintained an Overweight rating with a $200 price target, anticipating the upcoming COACH trial results as a potential catalyst. JPMorgan increased its price target to $245 following better-than-expected first-quarter results, particularly highlighting the strong performance of Yorvipath™. Similarly, Evercore ISI raised its target to $280, citing robust first-quarter growth and successful drug conversions. These developments indicate continued investor interest and optimism surrounding Ascendis Pharma’s growth trajectory.

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