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Investing.com - Wells Fargo (NYSE:WFC) has reduced its price target on Ultragenyx Pharma (NASDAQ:RARE) to $65 from $88 while maintaining an Overweight rating as the company’s Phase 3 Orbit trial progresses toward a final analysis expected around year-end. Currently trading at $41.44, the stock sits well below analyst targets ranging from $39 to $136, according to InvestingPro data.
The pharmaceutical company announced that patients will continue dosing in the Orbit trial, with final analysis to be conducted after at least 18 months of dosing, which should be completed by late October based on the enrollment completion in late April 2024. The Data Monitoring Committee indicated that the safety profile remains acceptable. Despite posting a loss in the last twelve months, the company maintains strong liquidity with a current ratio of 2.4 and has achieved impressive revenue growth of 33.46%.
Wells Fargo analyst Tiago Fauth noted that investor debate centers on whether the missed interim analysis is due to higher-than-expected variability or lower-than-expected effect size, though limited information makes this difficult to determine.
The bank indicated that the Orbit trial moving to final readout pushes expected approval timelines modestly, but doesn’t expect the peak sales opportunity to materially change if setrusertib is ultimately approved, citing consistently positive physician feedback.
Despite the delay, Wells Fargo believes the program shouldn’t be "fully written-off" given the merits of the mechanism of action in this indication and supportive Phase 2 data. InvestingPro analysis reveals 7 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s prospects. For deeper insights into Ultragenyx’s financial health and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Ultragenyx Pharmaceuticals announced that its Phase 3 Orbit study for setrusumab in patients with osteogenesis imperfecta did not meet the statistical significance required at the second interim analysis, prompting the continuation to a final analysis expected by year-end 2025. Despite this setback, several investment firms, including Canaccord Genuity, BofA Securities, Goldman Sachs, and Citi, have maintained their Buy ratings on Ultragenyx. Canaccord Genuity has set a price target of $136, while BofA Securities and Goldman Sachs have set targets of $80 and $82, respectively. Citi has reiterated a $110 price target, viewing the current stock price dip as a buying opportunity. The trial will proceed with a revised statistical threshold of p
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