Truist maintains Buy on Protagonist Therapeutics with $60 target

On Friday, Truist Securities reiterated its Buy rating and $60.00 price target for Protagonist Therapeutics (NASDAQ:PTGX) shares, which currently trade at $38.78 with a market capitalization of $2.3 billion. The firm’s analyst highlighted the potential of the company’s drug candidate, rusfertide, for treating polycythemia vera (PV), a type of blood cancer. According to InvestingPro, the company maintains excellent financial health with strong profitability metrics.

Truist’s analyst cited feedback from key opinion leaders (KOLs) during an investor event held by Protagonist Therapeutics, which included presentations by management and insights from Dr. Andrew Kuykendall of Moffitt Cancer Center and Dr. Joseph Michael Scandura of Weill Cornell Medicine. The discussions focused on the unmet medical needs and treatment paradigms for PV. The company’s solid financial position is reflected in its impressive current ratio of 10.7, indicating strong ability to meet short-term obligations.

According to the analyst, the KOL feedback favored rusfertide and suggested a substantial need for new treatments in PV. The firm maintains a positive outlook on the drug’s prospects, especially ahead of the Phase 3 pivotal data readout expected in March.

The analyst expressed continued conviction in rusfertide’s potential following the positive Phase 2 data and anticipates a favorable risk/reward scenario for Protagonist Therapeutics’ stock. The firm estimates a 20-30% upside and a 5-10% downside for the stock leading into the Phase 3 data announcement.

Protagonist Therapeutics’ focus on rusfertide for PV treatment is a significant part of the company’s efforts to address this rare disease. The upcoming clinical data readout will be a critical milestone for the company and its stakeholders. With a P/E ratio of 13.8 and analyst targets ranging from $43 to $67, investors seeking deeper insights can access comprehensive analysis and additional metrics through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, Protagonist Therapeutics has seen a flurry of activity from analysts. JMP Securities reiterated its Market Outperform rating on the company with a steady price target of $58.00, citing the potential benefits of the company’s drug candidate, rusfertide. Meanwhile, Jefferies analyst Roger Song confirmed a Buy rating, maintaining the company’s price target at $57.00. Clear Street initiated coverage on Protagonist Therapeutics with a Buy rating and a price target of $63.00, and BTIG affirmed its Buy rating with a price target of $67.00.

In recent developments, the company has reported a shift in executive roles, with Suneel Gupta transitioning to the role of Executive Vice President, Clinical Development. Protagonist Therapeutics is also progressing its lead candidate, rusfertide, through a Phase 3 clinical trial, with top-line results expected in March 2025. Furthermore, the company is advancing icotinib, an oral IL-23 receptor antagonist, through a Phase 2b trial for ulcerative colitis, with readouts anticipated in the first quarter of 2025.

These recent developments suggest a busy period for Protagonist Therapeutics, with a focus on the development of rusfertide and icotinib, and changes in the executive team. These are key highlights from recent news items regarding the company.

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