On Wednesday, Goldman Sachs reaffirmed its Buy rating on Ascendis Pharma (NASDAQ:ASND) shares with a price target of $200.00, well above the current trading price of $131.57. Analysts at the firm highlighted an eventful year ahead for the company with the ongoing launch of its key PTH product in the United States. According to InvestingPro data, analyst consensus remains highly bullish with a 1.27 rating, while targets range from $154 to $287.
Ascendis Pharma, now valued at $7.86 billion, recently held an analyst event at an industry conference, which Goldman Sachs attended.
The discussions at the event focused on several key topics, including the initiation of legal action by BioMarin Pharmaceutical (NASDAQ:BMRN) Inc. against Ascendis in Europe over a CNP patent, the commercial progress of Yorvipath in the U.S. and EU markets, expected clinical and regulatory milestones for 2025, and the company's efforts to broaden the application of its TransCon technology to new areas such as GLP-1s and protein degraders.
InvestingPro analysis reveals impressive revenue growth of 115% in the last twelve months, though the company remains unprofitable.
Goldman Sachs analysts remain positive about the early launch metrics for Yorvipath and its commercial prospects, which they believe could alleviate concerns regarding the performance of Skytrofa. The analysts have not taken a stance on the outcome of the ongoing litigation but are encouraged by the initial success of Yorvipath's market introduction.
Looking ahead, the investment firm anticipates that investors will closely watch Ascendis Pharma's progress towards achieving break-even operating cash flow. Moreover, the pace of Yorvipath's market launch and the potential of TransCon CNP opportunities will be key areas of interest. The firm has reiterated its Buy rating and maintains a 12-month price target of $200 for Ascendis Pharma stock.
In other recent news, Ascendis Pharma has experienced several developments. The company missed its Skytrofa revenue forecast, causing its stock to fall. The forecast for Skytrofa revenue was updated to approximately €202 million for the year, falling short of the average analyst expectations.
However, Ascendis Pharma also provided a preliminary estimate for the total full-year revenue for 2024, expected to be around €364 million, including a $100 million milestone payment from Novo Nordisk (NYSE:NVO).
Analysts from UBS and Jefferies have expressed optimism about Ascendis Pharma's future. UBS initiated coverage on the company with a Buy rating, highlighting the potential for multiple product launches and a shift towards profitability. Jefferies raised the company's stock price target to $194, following positive trial results for Skytrofa treatment.
On the other hand, TD Cowen and Citi have adjusted their outlooks for Ascendis Pharma, lowering their price targets to $153 and $200 respectively, while maintaining Buy ratings. These adjustments were made following the company's earnings report, which indicated that Skytrofa's revenue fell short of estimates.
Despite these adjustments, the firms highlighted several upcoming milestones and potential positive drivers for the company, including the upcoming launch of Yorvipath and various clinical trials.
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