Analyst Glen Santangelo of Jefferies maintained a Buy rating on Phathom Pharmaceuticals (PHAT – Research Report), with a price target of $13.00.
Glen Santangelo has given his Buy rating due to a combination of factors that suggest a favorable risk/reward profile for Phathom Pharmaceuticals. Despite some uncertainties, such as the loss of exclusivity (LOE) concerns and softer-than-expected first-quarter trends, the stock’s current price reflects these challenges, indicating that the worst-case scenario is already priced in. The potential for upside is driven by ongoing launch progress, the outcome of the Citizen Petition which could extend exclusivity to 2032, and advancements in the company’s pipeline.
Additionally, the recent increase in the stock price by 35% over three trading sessions indicates growing interest, possibly hinting at broader corporate activities like mergers and acquisitions. Although the price target has been adjusted from $17 to $13 due to increased operational expenses and slightly lower revenue expectations, the stock’s current valuation under $6 presents an attractive opportunity for investors. The company’s strategic focus on consumer awareness and direct-to-consumer investment further supports the Buy rating, as these efforts are expected to drive future growth.
In another report released on March 7, Craig-Hallum also maintained a Buy rating on the stock with a $19.00 price target.