Piper Sandler Reiterates Overweight Rating on Madrigal Pharmaceuticals (MDGL)

Piper Sandler analyst Yasmeen Rahimi reiterated an Overweight rating and $336.00 price target on Madrigal Pharmaceuticals (NASDAQ: MDGL).

The analyst commented, "We remain bullish on MDGL as a key pick into 2H24 and anticipate EASL (June 5-8) will be a clearing event for the stock. With 9 key clinical GLP-1 posters/presentations at the conference, we believe Rezdiffra will continue to hold its position as the only safe, oral NASH drug, such that GLP-1s do not pose a threat. Not only does GLP-1 lack direct livertargeting (thus no fibrosis benefit), real-world data shows high discontinuation (>30% within 1 month and ~60% by 3 months). Moreover, we do not believe semaglutide's 72-week Ph3 ESSENCE by YE24 will hit on fibrosis as weight loss-mediated fibrosis improvements takes upwards of 5+ years in F3/4 NASH patients per a bariatric surgery study. Thus, we expect ESSENCE data to be a key stock moving event for MDGL as we think no fibrosis benefit with semaglutide will put bears' GLP-1 NASH argument to rest."

For an analyst ratings summary and ratings history on Madrigal Pharmaceuticals click here. For more ratings news on Madrigal Pharmaceuticals click here.

Shares of Madrigal Pharmaceuticals closed at $223.29 yesterday.

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