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Buy Rating for Madrigal Pharmaceuticals Driven by Strong Financials and Promising Clinical Trial Results

Buy Rating for Madrigal Pharmaceuticals Driven by Strong Financials and Promising Clinical Trial Results

Madrigal Pharmaceuticals (MDGLResearch Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ritu Baral from TD Cowen maintained a Buy rating on the stock and has a $390.00 price target.

Ritu Baral has given his Buy rating due to a combination of factors including Madrigal Pharmaceuticals’ strong financial performance and promising clinical trial results. The company reported revenues for the fourth quarter and full year 2024 that were at the top of their pre-announced range, indicating robust sales growth for their drug Rezdiffra. This financial strength is further supported by a substantial cash reserve, which provides a solid foundation for ongoing trials and commercialization efforts in the US and EU.
Additionally, the recent data from the MAESTRO-NAFLD-1 OLE trial demonstrated significant clinical benefits, with a notable percentage of patients achieving a reduction in liver stiffness. This positive outcome is crucial for the ongoing F4 Outcome trial and enhances the potential for future regulatory approvals, particularly with an EMA decision anticipated in mid-2025. These factors collectively underpin the optimistic outlook and justify the Buy rating for Madrigal Pharmaceuticals.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $443.00 price target.

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