TD Cowen maintains Buy rating on Ascendis Pharma stock

On Tuesday, TD Cowen analysts reiterated a Buy rating and maintained a $194.00 price target for Ascendis Pharma (NASDAQ:ASND) stock. The company, currently valued at $10.45 billion, has shown impressive momentum with a 33.5% return over the past six months. According to InvestingPro data, analyst targets range from $194 to $290, suggesting potential upside from current levels. This decision follows Ascendis Pharma’s release of positive 26-week data from their Phase 2 COACH trial. The trial involved 21 children aged 2 to 11 with achondroplasia (ACH) and tested the combination therapy of TransCon CNP and Skytrofa.

The results indicated improvements in Annualized Growth Velocity (AGV), ACH height Z score, and body proportionality in both treatment-naïve and CNP-treated cohorts. These findings were compared to the Phase 3 ApproaCH trial at 52 weeks. With revenue growth of 12% in the last twelve months and a strong gross profit margin of 85.3%, InvestingPro analysis reveals the company maintains solid operational efficiency despite being in development phase. The positive data supports the potential of this combination therapy, which is not currently factored into TD Cowen’s model.

The analysts at TD Cowen continue to see Ascendis Pharma stock as a top pick, citing potential upside to Yorvipath estimates for fiscal years 2025 and 2026. Trading near its 52-week high of $183, the stock has demonstrated strong momentum. For deeper insights into Ascendis Pharma’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks. They no longer view AstraZeneca’s (NASDAQ:AZN) eneboparatide as a significant competitive threat.

Additionally, TD Cowen analysts do not expect the CALYPSO Phase 3 data to be available at the ENDO conference in July. They suggest that AstraZeneca may be waiting for the 52-week data to present results, indicating that the 26-week primary endpoint data might not have met expectations.

In other recent news, Ascendis Pharma has been in the spotlight following several key developments. The company reported positive interim results from its Phase 2 COACH trial, which evaluated a combination treatment for children with achondroplasia. The trial demonstrated significant annualized growth velocity benefits, with treatment-naive patients showing an increase of 4.23 cm/year. This positive outcome has led BofA Securities to raise its price target for Ascendis Pharma to $216, maintaining a "Buy" rating. Additionally, the U.S. Food and Drug Administration (FDA) has accepted Ascendis Pharma’s New Drug Application for TransCon CNP with a priority review, setting a PDUFA goal date for November 30, 2025.

RBC Capital has reiterated its "Outperform" rating for Ascendis Pharma, citing growth potential for the drug Yorvipath, which continues to show promise according to a survey involving U.S. endocrinologists. The survey highlighted the drug’s convenience and potential for a larger target market. Meanwhile, Canaccord Genuity maintained a "Hold" rating, pointing out concerns about the durability of the effects of Ascendis Pharma’s combination therapy. They noted the treatment as an additional option rather than a replacement for existing therapies. Ascendis Pharma’s strategic moves, including a recent deal with Novo Nordisk (NYSE:NVO), have been seen as supporting its growth outlook.

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