In a report released yesterday, Tazeen Ahmad from Bank of America Securities reiterated a Sell rating on PTC Therapeutics (PTCT – Research Report), with a price target of $41.00.
Tazeen Ahmad’s rating is based on a combination of factors that suggest potential challenges for PTC Therapeutics. The company has set a broad revenue guidance for FY25, which includes both commercial programs and potential pipeline launches. This range introduces significant regulatory risk, especially since the Street estimates for FY25 revenue are higher than the company’s guidance. Ahmad believes that the pipeline programs still require de-risking, which could lead to the company missing its revenue targets.
Additionally, there are uncertainties surrounding the regulatory approvals for several of PTCT’s programs. For instance, while there is optimism about the approval for PKU, challenges such as payor coverage due to cheaper alternatives could arise. The FA program also faces skepticism due to a failed phase 3 study and existing competition. Furthermore, the ongoing FDA review of Translarna adds another layer of uncertainty. These factors contribute to Ahmad’s decision to maintain a Sell rating, with a price objective of $41, as they await key regulatory events in 2025.
PTCT’s price has also changed dramatically for the past six months – from $35.320 to $50.570, which is a 43.18% increase.