On Tuesday, Protagonist Therapeutics (NASDAQ:PTGX) received a Buy rating from TD Cowen, with a set price target of $65.00. The firm's initiation of coverage on the stock is based on the potential of Protagonist's drug candidates, including rusfertide and JNJ-2113.
Rusfertide is seen as having a market potential of over $3 billion, with Protagonist Therapeutics poised to claim upwards of $1 billion of that market in polycythemia vera (PV). Additionally, JNJ-2113, an oral IL-23 inhibitor, is targeted at the more than 5 million patients with psoriasis (PsO) and ulcerative colitis (UC) who are in need of an oral medication. The drug is believed to have the potential to be competitive even against injectable treatments, providing a significant upside.
The analyst's comments highlighted the conservative nature of the estimates, which support the Buy rating and the discounted cash flow (DCF)-based price target of $65. This target is said to allow for substantial room for stock value expansion. Furthermore, the firm anticipates that Protagonist Therapeutics' pipeline will continue to generate value for the company in the years ahead.
In other recent news, the company has seen a board reshuffle with Daniel N. Swisher Jr. stepping down, and Sarah A. O'Dowd filling the vacancy left on the Audit Committee. The collaboration with Takeda on the rusfertide program for polycythemia vera treatment is progressing, potentially bringing substantial financial benefits.
Both H.C. Wainwright and Truist Securities have given Protagonist Therapeutics a Buy rating. The company has also appointed Newman Yeilding, M.D., as its Chief Scientific Advisor, and announced its entry into the obesity treatment market.
InvestingPro Insights
Protagonist Therapeutics (NASDAQ:PTGX) stands out with a robust financial and operational profile as reflected in real-time data from InvestingPro. The company's market capitalization is currently at $2.72 billion, and it holds a price-to-earnings (P/E) ratio of 16.58, which adjusts to 16.0 when considering the last twelve months as of Q2 2024. This valuation is underpinned by a striking operating income margin of 47.71% and an EBITDA growth of 204.81% during the same period, showcasing the company's profitability and efficiency.
InvestingPro Tips highlight that Protagonist Therapeutics holds more cash than debt, a sign of financial health that could support the company's development strategies. Additionally, analysts predict that the company will be profitable this year, aligning with the growth narrative presented by TD Cowen's coverage initiation and price target. The company's stock has also experienced a high return over the last year, with a year-to-date price total return of 101.26%, indicating strong market confidence.
For investors seeking further insights, InvestingPro offers additional tips on Protagonist Therapeutics, which can be found at https://www.investing.com/pro/PTGX. These tips provide a deeper dive into the company's financial metrics and market potential, helping to inform investment decisions with comprehensive analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.