Madrigal Pharmaceuticals price target lowered to $154 from $155 at BofA

BofA lowered the firm’s price target on Madrigal Pharmaceuticals (MDGL) to $154 from $155 and keeps an Underperform rating on the shares after the company provided Q4 guidance for Rezdiffra that the analyst notes was “a solid” $10M, or 11%, over Visible Alpha consensus at the midpoint. While “certainly impressive,” this guidance still fell below buyside expectations, which the firm thinks had grown “increasingly aggressive” following the Q3 update. The firm doesn’t doubt the role of Rezdiffra in the treatment paradigm, but whether this can support current valuations, especially with several longer-term headwinds, “remains unclear,” the analyst tells investors.