BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Truist Securities initiated coverage on PTC Therapeutics (NASDAQ:PTCT) with a buy rating and an $80 price target on Monday. The company, currently trading at $51.87 with a market capitalization of $4.1 billion, has demonstrated strong financial performance with a P/E ratio of 6.22 and impressive revenue growth of 91% over the last twelve months.
The research firm cited the potential launches of two drugs in the coming months as key catalysts for the biopharmaceutical company. PTC (NASDAQ:PTC)’s sepiapterin for phenylketonuria (PKU) has a PDUFA date of July 29, 2025, while vatiquinone for Friedreich’s ataxia (FA) has a PDUFA date of August 19, 2025.
Truist forecasts combined peak sales exceeding $2 billion for sepiapterin and vatiquinone alone, suggesting the company is undervalued at current levels. The firm also highlighted PTC’s promising pipeline, particularly PTC518 for Huntington’s disease, which was developed through the company’s RNA modulation platform.
The positive outlook is expected to offset concerns related to Translarna’s (ataluren) performance history in Duchenne muscular dystrophy (DMD), according to Truist’s analysis.
Truist characterized PTC Therapeutics as a "turnaround story in the making" with near-term value-creating catalysts that make it a "compelling biotech investment."
In other recent news, PTC Therapeutics reported a notable first-quarter 2025 revenue of $190 million, surpassing consensus estimates of $168 million. This strong performance was primarily driven by Translarna, which generated $86.2 million in revenue, exceeding the forecast of $68 million. The company subsequently raised its 2025 revenue guidance to a range of $650-800 million, with an increase at the lower end due to its Duchenne muscular dystrophy franchise. BofA Securities upgraded PTC Therapeutics’ stock from Neutral to Buy, with a new price target of $68, reflecting optimism about the company’s phenylketonuria (PKU) program. RBC Capital maintained its Outperform rating, raising the price target to $60, citing potential positive developments for sepiapterin. Meanwhile, Citi kept a Neutral rating with a $40 price target, expressing caution due to the ongoing evaluation of PTC518 for Huntington’s disease. Barclays (LON:BARC) adjusted its price target to $42 from $56 while maintaining an Equalweight rating, noting the company’s solid cash reserves of $2.03 billion. These developments highlight a period of active assessment and strategic adjustments for PTC Therapeutics.
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