Trump/Putin summit, UnitedHealth and Japan’s GDP - what’s moving markets
On Thursday, UBS reaffirmed its Buy rating on Madrigal Pharmaceuticals (NASDAQ:MDGL) with a price target of $441.00, above the current price of $357.31. The firm’s analyst, Eliana Merle, expressed confidence in the company’s valuation, suggesting that the current stock price does not fully reflect Madrigal’s long-term potential in treating metabolic-associated steatohepatitis (MASH). According to InvestingPro data, analyst targets range from $236 to $539, with the consensus maintaining a Strong Buy recommendation.
Madrigal Pharmaceuticals reported its fourth-quarter and full-year 2024 earnings per share and held a conference call to discuss the results. The company had pre-announced its fourth-quarter sales in January, achieving $180.13 million in revenue with a strong gross margin of 96.54%. Following the earnings release and management discussions, the UBS analyst found reasons for optimism, citing management’s positive outlook on the commercial trajectory for the year and expectations for growing demand. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 6.1, indicating strong liquidity.
The analyst highlighted the updated two-year data from the Phase 3 MAESTRO-NAFLD-1 trial on patients with stage F4 fibrosis as particularly encouraging. This data is anticipated to positively influence the potential outcomes benefit in the ongoing Phase 3 MAESTRO-NASH OUTCOMES trial, with results expected in 2027.
Madrigal’s stock experienced an approximate 15% surge on Wednesday, attributed to a combination of factors including the promising F4 data, first-quarter commentary, and a notably high short interest leading up to the earnings announcement.
In other recent news, Madrigal Pharmaceuticals has reported strong financial results for the fourth quarter and full year of 2024, with revenues reaching $103 million for the quarter and $180 million for the year, both at the upper end of their preannounced range. The company also exceeded analyst expectations with an earnings per share of ($2.71), significantly better than the projected ($4.48). Additionally, positive data from Madrigal’s Rezdiffra trials have shown a significant reduction in liver stiffness among patients, contributing to a favorable outlook for the drug. JMP Securities raised its price target for Madrigal to $443, citing the promising trial data. Similarly, Citi increased its target to $469, noting strong sales performance for Rezdiffra. TD Cowen maintained its price target at $390, emphasizing the company’s progress in treating non-alcoholic steatohepatitis (NASH). Madrigal’s financial position remains robust, with cash and marketable securities totaling $931.3 million by the end of 2024. The company anticipates further developments, including a potential European launch of Rezdiffra in 2025, pending regulatory approval.
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