Truist Securities initiates coverage on Madrigal Pharmaceuticals stock with Buy rating

Investing.com - Truist Securities initiated coverage on Madrigal Pharmaceuticals (NASDAQ:MDGL) with a Buy rating and a price target of $580.00 on Tuesday. The stock, currently trading at $437.10, has delivered impressive returns with a 98.55% gain over the past year. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.

The research firm cited the recent approval of Madrigal’s drug Rezdiffra for MASH (metabolic dysfunction-associated steatohepatitis), noting that early launch metrics indicate high demand and potential for upside from continued strong launch performance. The company maintains a GOOD Financial Health Score of 2.6 on InvestingPro, with liquid assets exceeding short-term obligations by a factor of 5.1x.

Truist Securities highlighted the sizable market opportunity in MASH, which affects an estimated 10-20 million U.S. patients, suggesting this potential is not fully reflected in current stock levels.

The firm projects peak sales of $6.2 billion for Rezdiffra in the approved F2/F3 MASH subtype by 2036, compared to consensus estimates of $4.5 billion, based on key opinion leader feedback showing high interest in the drug.

Additional upside potential exists in the MASH F4 subtype with data expected in 2027, longer market exclusivity than current Street models suggest, and the possibility of Madrigal becoming an acquisition target given recent Big Pharma interest in the MASH treatment space. With a market capitalization of $9.75 billion and analysts forecasting significant revenue growth, the company’s stock continues to show strong momentum.

In other recent news, Madrigal Pharmaceuticals has seen a series of positive developments. The company reported impressive commercial performance for its MASH drug, Rezdiffra, with second-quarter 2025 sales reaching $212.8 million and a patient base of over 23,000. This success has led several analyst firms to adjust their price targets upward. Oppenheimer raised its price target to $590, citing the growing importance of combination approaches in treating MASH. Canaccord Genuity also increased its target to $526, expressing confidence in Rezdiffra’s competitive edge due to its efficacy and safety. Meanwhile, TD Cowen adjusted its price target to $554 following Rezdiffra’s approval in the European Union. UBS maintained its Buy rating, highlighting a positive outlook on the MASH market. Additionally, H.C. Wainwright initiated coverage with a Buy rating and a $500 target, emphasizing Madrigal’s strong position in the treatment landscape.

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