Truist maintains Buy on Protagonist Therapeutics, $60 target

Published 03/03/2025, 20:16
Truist maintains Buy on Protagonist Therapeutics, $60 target

On Monday, Truist Securities maintained a Buy rating and a $60.00 price target on Protagonist Therapeutics (NASDAQ:PTGX) shares, representing significant upside from the current trading price of $37.89. According to InvestingPro data, analyst targets range from $38 to $68, with a strong consensus recommendation of 1.6 (Buy). The firm’s stance comes after considering the recent achievements of the company’s VERIFY study. The primary endpoint and key secondary endpoints were met with high statistical significance, which supports the potential for future regulatory approval according to Truist Securities.

The next steps for Protagonist Therapeutics include a meeting with the FDA, with plans to file a New Drug Application (NDA) in the second half of 2025. With an excellent InvestingPro Financial Health score of 3.94 and a strong balance sheet showing more cash than debt, the company appears well-positioned for this next phase. Management is expected to make a decision on whether to opt in or out after reassessing the market opportunity, which may be equal to or surpass previous guidance of $1-2 billion. This reassessment will take into account feedback from key opinion leaders (KOLs) in the polycythemia vera (PV) community regarding the VERIFY data.

The deadline for Protagonist Therapeutics to make their decision is around mid-2026. This timeline provides the company with the opportunity to evaluate the market response and the potential of their product. The current assessment is based solely on the opportunity within the United States market, but Truist Securities anticipates that the global opportunity could be even larger.

Protagonist Therapeutics’ progress and the positive results from the VERIFY study mark significant milestones for the company. With the expectation of a future medical conference presentation providing a more detailed analysis, stakeholders may gain further insight into the company’s prospects and the potential impact of their product on the market.

In other recent news, Protagonist Therapeutics has reported significant developments concerning its drug candidate, rusfertide. The company recently released positive Phase 3 trial data for rusfertide, which is being developed to treat polycythemia vera. The trial showed a higher than anticipated response rate, with 77% of patients responding to the treatment. This success has led to expectations of a New Drug Application (NDA) filing in the latter half of the year. Analysts have reacted positively, with TD Cowen maintaining a Buy rating and a $65 price target, while JPMorgan and H.C. Wainwright raised their price targets to $57 and $54, respectively. Citizens JMP reiterated its Market Outperform rating with a $58 target, emphasizing the potential of both rusfertide and another drug candidate, icotrokinra. Analysts highlight the significant market opportunity for rusfertide, estimating its peak revenue to potentially reach $1-2 billion. Protagonist’s strategic partnership with Takeda offers options for profit-sharing or opting out for substantial payments, with analysts noting the importance of these decisions for the company’s future financial health. These developments underscore the strong confidence in rusfertide’s clinical benefits and commercial prospects.

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