PTC Therapeutics (PTCT) PT Lowered to $53 at JPMorgan, 'Late Stage Assets Remain Significantly Underappreciated'

JPMorgan analyst Eric Joseph lowered the price target on PTC Therapeutics (NASDAQ: PTCT) to $53.00 (from $70.00) while maintaining a Overweight rating.

The analyst comments "We’re lowering our Dec -24 PT ($53/sh vs $70 prior) but maintaining our Overweight rating following the negative CHMP opinion regarding full / extended conditional marketing authorization of Translarna in the EU. While the company is seeking a re-examination of the opinion (decision in January 2024), given what reads to us like a thorough review of the Type II application in the lead up to this morning’s decision, a favorable outcome on re-examination feels to us like a low probability outcome. Indeed, the downstream implications of CMA loss in Europe are impactful to the company’s P&L and balance sheet stability over the mid-term, introducing a potential financing overhang ahead of the commercialization of sepiapterin in PKU, and further development of the clinical pipeline, mainly PTC518. While today’s pullback (down ~29% vs NBI flat) feels appropriate, and noting the balance of news flow over the mid-term being perhaps less positively biased (potential PKU PDUFA and additional PIVOT-HD results likely being 2H24 events at the earliest), current share levels likely reflect fair value for the commercial stage assets, however, in our view, give little to no credit for the development candidates, where we remain fundamentally supportive on the PKU commercial potential of sepiapterin and encouraged by the clinical potential of PIVOT-HD."

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