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On Tuesday, UBS analysts initiated coverage on Ascendis Pharma (NASDAQ:ASND), assigning a Buy rating to the company's stock with a price target of $196.00.
The coverage begins on a positive note, highlighting Ascendis Pharma as a commercial stage biotechnology firm with several approved endocrinology products and a proven platform technology.
The analysts believe that the upcoming one to three years could be pivotal for the company, with expectations for multiple product launches and a possible shift towards profitability.
They noted that the market currently undervalues Ascendis Pharma's long-term prospects, estimating that by 2035, the company's total revenues could reach approximately €3.8 billion. This projection is set against the company's current market capitalization of around $8.5 billion.
The revenue forecast includes significant contributions from treatments for hypoparathyroidism (estimated at around €1.6 billion), achondroplasia and other genetic growth disorders (approximately €1 billion), and growth hormone (GH) disorders (about €1.2 billion). The analysts underscored that the potential of TransCon CNP, Ascendis Pharma's therapy for multiple growth disorders beyond achondroplasia, is not fully appreciated by the market.
Furthermore, UBS analysts anticipate that the launch of the company's hypoparathyroidism treatment, which is a key focus in 2025, could exceed market expectations.
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