On Monday, BridgeBio Pharma (NASDAQ:BBIO) received a new Outperform rating from Evercore ISI, accompanied by a price target set at $50.00. The firm highlighted several factors influencing this positive outlook, including upcoming developments in the company's drug pipeline.
The coverage initiation pointed out Acoramidis, BridgeBio's treatment for ATTR-CM, as a complex aspect of the company's narrative, particularly following the HELIOS-B study results. Despite the complications, approval for Acoramidis is anticipated in the fourth quarter of 2024.
The firm projects that even with a conservative estimate of 10% market penetration, the drug could achieve peak sales of approximately $1.7 billion, suggesting significant growth potential.
In addition to Acoramidis, Evercore ISI expressed confidence in Infigratinib for achondroplasia, based on Phase 2 results. Despite trailing approximately five years behind the current market leader, the firm foresees robust long-term prospects for Infigratinib, with Phase 3 data expected in 2025 and estimated peak sales of around $1.8 billion.
Furthermore, the firm identified two Phase 3 assets, encaleret and BBP-418, as underappreciated elements that could contribute to BridgeBio's valuation. With data for both assets also expected in 2025, combined peak sales potential is estimated at roughly $1.5 billion, providing additional upside to the company's portfolio.
InvestingPro Insights
As BridgeBio Pharma (NASDAQ:BBIO) gains a new Outperform rating and positive projections for its drug pipeline, the latest data from InvestingPro enriches the narrative for potential investors. BridgeBio's market capitalization stands at $5.33 billion, reflecting the market's current valuation of the company.
The revenue growth over the last twelve months as of Q1 2024 is an impressive 181.05%, signaling strong performance and potential for future growth. Moreover, despite the lack of profitability in the last twelve months, with a P/E ratio of -10.05, the company has exhibited a high return over the past year with a 1 Year Price Total Return of 114.84%.
InvestingPro Tips indicate that analysts expect sales to grow in the current year, which aligns with the optimistic outlook presented by Evercore ISI. Moreover, with 2 analysts having revised their earnings upwards for the upcoming period, the sentiment around BridgeBio's financial future appears to be strengthening.
It is worth noting that while the company is not expected to be profitable this year and does not pay a dividend, its liquid assets do exceed short-term obligations, providing a degree of financial stability.
For investors keen on further analysis and additional InvestingPro Tips, there are more insights available for BridgeBio Pharma at InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of 7 additional tips to guide your investment decisions.
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