PTC Therapeutics (PTCT) Price Target Raised to $55 at Credit Suisse

Credit Suisse reiterated an Outperform rating on PTC Therapeutics (NASDAQ: PTCT) and raised its price target to $55.00 (from $40.00). Analyst Jason Kantor called it the next multi-billion dollar orphan drug company.

"Our deep dive analysis and newly expanded coverage in the DMD space increase our confidence in the clinical/regulatory strategy at PTCT. We expect PTCT to continue to outperform based on three emerging value drivers: (1) Translarna was recently approved for muscular dystrophy (DMD) in EU, with first significant sales starting in 2015. (2) The fully enrolled US confirmatory P3 trial in muscular dystrophy will read out in Oct. 2015, and we expect the stock to appreciate ahead of these results. (3) Investors have not fully appreciated its pipeline program in spinal muscular atrophy (SMA), partnered with Roche. Multi-drug / multi-disease orphan drug companies such as ALXN, VRTX, BMRN, ISIS, and ALNY have market capitalizations from $4 billion to $32 billion," said Kantor.

"Our target includes an increased probability of success in DMD (now 75%), higher adjusted sales, and increased confidence in the SMA program. Our scenario analysis includes a $78 bull case approximately 12 months out," he added.

For an analyst ratings summary and ratings history on PTC Therapeutics click here. For more ratings news on PTC Therapeutics click here.

Shares of PTC Therapeutics closed at $40.45 yesterday.

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