US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Thursday, UBS reaffirmed its Buy rating and $196.00 price target for Ascendis Pharma (NASDAQ:ASND) shares. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $160 to $289, suggesting significant upside potential. The stock currently trades near its 52-week high of $169.37. The firm’s analysts project a strong performance for the company’s Yorvipath launch, anticipating an acceleration in sales as reimbursement processes improve and approvals from payors are expedited. This optimism appears well-founded, as InvestingPro data shows impressive revenue growth of 36.3% and an industry-leading gross profit margin of 87.8%. Ascendis Pharma is expected to see an increase in patients using the drug throughout the year, driven by high demand and physicians’ growing familiarity with patient outcomes.
The analysts highlighted the potential impact of detailed data from AstraZeneca (NASDAQ:AZN)’s eneboparitide, which met its primary endpoint in the Phase 3 CALYPSO study on March 17, 2023. However, the press release did not indicate the data was clinically meaningful. UBS suggests that if eneboparitide is not seen as competitive with Yorvipath, Ascendis Pharma’s stock could approach a valuation near $200 per share. The company maintains a GOOD financial health score according to InvestingPro’s comprehensive analysis, despite operating with moderate debt levels.
Ascendis Pharma is on track for significant growth, with two commercial products already in the market and a potential third, TransCon CNP, on the way. The company is also approaching profitability, which is anticipated to be a major milestone in 2025 and 2026.
The UBS analysts’ outlook for Ascendis Pharma is based on the expectation of Yorvipath’s successful market penetration and the comparative performance of competing treatments. The company’s strategic position is set to be bolstered by its growing product portfolio and approaching profitability, indicating a positive trajectory for Ascendis Pharma in the near future.
In other recent news, Ascendis Pharma’s latest earnings and revenue results have garnered significant attention from analysts. The company’s fourth-quarter earnings for 2024 showed stronger performance than anticipated, leading Cantor Fitzgerald to raise its price target from $170 to $200, maintaining an Overweight rating. Similarly, Evercore ISI increased its price target to $260 from $220, citing potential for significant value growth in 2025 and beyond. Meanwhile, TD Cowen adjusted its price target to $162, highlighting the strong launch of Yorvipath and the stabilized pricing of Skytrofa, despite Skytrofa’s fourth-quarter revenue falling short of expectations.
Stifel analysts also raised their price target to $212, expressing confidence in Yorvipath’s demand, which has shown a notable rise in prescriptions. Goldman Sachs echoed this sentiment by increasing its price target to $225, maintaining a Buy rating, and noting the significant rise in U.S. prescriptions for Yorvipath. Ascendis Pharma’s regulatory progress is also noteworthy, with filings for TransCon CNP expected in 2025, which could influence future growth. Analysts are closely monitoring these developments, as they may impact Ascendis Pharma’s market performance in the coming years.
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