On Monday, Piper Sandler maintained a positive stance on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), reiterating an Overweight rating and a $130.00 price target for the company's stock. The reaffirmation comes after a recent update on Ultragenyx's GTX-102, an antisense oligonucleotide (ASO) being developed for the treatment of Angelman syndrome.
Despite a recent 8-9% decline in Ultragenyx's stock price, which analysts attribute to investor concerns regarding additional cases of lower extremity weakness, Piper Sandler sees a compelling investment opportunity. The firm believes that the clinical utility of GTX-102 is increasingly convincing, noting dramatic improvements in key domains as measured by Ultragenyx's Motor Development Response Index (MDRI).
The company is reportedly nearing the end of discussions with regulatory authorities, expecting to have full clarity around the middle of the year, with plans to initiate a Phase 3 trial by the end of 2024. Piper Sandler's outlook is buoyed by the potential value of the GTX-102 program, which is factored into their valuation at approximately $50 per share in their discounted cash flow/sum-of-the-parts (DCF/SoP) analysis.
Piper Sandler's commentary underscores the firm's belief in the significant potential of GTX-102, suggesting that the market has yet to fully recognize the value of this program. The firm encourages investors to consider the current lower stock price as an opportunity to invest in Ultragenyx.
InvestingPro Insights
Piper Sandler's optimistic outlook on Ultragenyx Pharmaceutical (NASDAQ:RARE) is supported by some interesting data points. According to real-time data from InvestingPro, Ultragenyx has a market capitalization of $3.53 billion and has experienced notable revenue growth, with a 19.52% increase in the last twelve months as of Q4 2023. Furthermore, the company's gross profit margin stands impressively at 72.43% for the same period, highlighting its ability to maintain profitability on its products and services.
InvestingPro Tips also shed light on the company's financial health and stock performance. Ultragenyx's liquid assets surpass its short-term obligations, indicating a comfortable liquidity position. Additionally, the company operates with a moderate level of debt, which could be seen as a positive sign for risk-averse investors. It's worth noting that Ultragenyx's stock has seen a large price uptick of 49.63% over the last six months, reflecting investor optimism.
For those considering an investment, these metrics and the additional 17 InvestingPro Tips available for Ultragenyx could provide a deeper understanding of the company's potential. Interested investors can explore these insights further and take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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