Sell Rating Maintained for PTC Therapeutics Amid Long-Term Revenue Growth Concerns

Analyst Paul Choi from Goldman Sachs maintained a Sell rating on PTC Therapeutics (PTCT – Research Report) and increased the price target to $32.00 from $18.00.

Paul Choi’s rating is based on his analysis of PTC Therapeutics’ potential for revenue growth and the company’s ability to maintain it over the long term. Despite a recent positive regulatory development concerning the European Commission’s decision to reconsider the negative opinion on Translarna, Choi believes this may only have a temporary beneficial impact. He points out that there are still significant challenges to the company’s structural ability to sustain revenue growth, which is essential for a positive outlook on the stock. The uncertainty surrounding the upcoming regulatory decisions for PTC Therapeutics’ other products also contributes to the Sell rating, as their success is not guaranteed to translate into a more robust growth model for the company.

Accordingly, while there may be upward revisions to near-term revenue estimates and potential upside risks should positive decisions arise for Translarna and other products like Upstaza, vatiquinone, and sepiaterin, the overall picture remains clouded with uncertainty. Choi underscores the importance of a sustainable growth model, which he currently sees as lacking in PTC Therapeutics’ case. Consequently, even with an increased 12-month price target, the Sell rating is maintained due to these overarching concerns about the company’s long-term revenue durability and growth prospects.

According to TipRanks, Choi is a 4-star analyst with an average return of 6.1% and a 51.85% success rate. Choi covers the Healthcare sector, focusing on stocks such as BridgeBio Pharma, Kiniksa Pharmaceuticals, and Gossamer Bio.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

PTC Therapeutics (PTCT) Company Description:

PTC Therapeutics, Inc. is a biopharmaceutical company, which engages in the discovery and commercialization of clinically-differentiated medicines. It focuses on the development of new treatments for multiple therapeutic areas, including rare diseases and oncology. The company was founded by Allan Steven Jacobson and Stuart W. Peltz on March 31, 1998 and is headquartered in South Plainfield, NJ.