Analyst Brian Cheng from J.P. Morgan maintained a Buy rating on Protagonist Therapeutics (PTGX – Research Report) and keeping the price target at $53.00.
Brian Cheng has given his Buy rating due to a combination of factors, primarily focusing on the potential of Protagonist Therapeutics’ lead asset, rusfertide, which is partnered with Takeda. Cheng believes that rusfertide addresses significant unmet needs in polycythemia vera (PV) and has an attractive value proposition. Despite lingering concerns about safety, particularly due to past clinical holds, the safeguards now in place are expected to mitigate these risks.
Additionally, Cheng highlights the undervaluation of Protagonist’s partnerships, such as the collaboration with Janssen on icotrokinra, and the potential upside of its oral IL-17 program. The company’s strong financial position, with a solid cash runway, further supports the Buy rating. Cheng’s price target of $53 is based on a detailed valuation methodology, considering the contributions from rusfertide and other pipeline assets, along with corporate expenses and cash reserves.
In another report released on February 24, BTIG also maintained a Buy rating on the stock with a $67.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PTGX in relation to earlier this year.