Sell Rating on PTC Therapeutics Amid Sustainability Concerns and Market Uncertainties

Analyst Paul Choi of Goldman Sachs maintained a Sell rating on PTC Therapeutics (PTCT – Research Report), retaining the price target of $18.00.

Paul Choi has given his Sell rating due to a combination of factors concerning PTC Therapeutics’s financial performance and market prospects. While PTC Therapeutics reported a first-quarter revenue that exceeded both Goldman Sachs and Visible Alpha consensus estimates by 29% and 24% respectively, Choi remains skeptical about the sustainability of this sales trend. The better-than-expected sales were primarily driven by the company’s drugs Translarna and Emflaza, but despite this positive short-term outcome, Choi perceives risks that may hinder future performance.

The unchanged full-year guidance provided by PTC Therapeutics, despite the strong first-quarter results, seems to have influenced Choi’s perspective, suggesting that the company does not anticipate this level of performance to persist throughout 2024. Additionally, there are uncertainties surrounding the fate of Translarna in the European market, which could potentially impact future revenues. As a result, Choi maintains a Sell rating with a price target of $18, reflecting his concerns over the company’s ability to sustain its recent sales success and navigate upcoming regulatory challenges.

Choi covers the Healthcare sector, focusing on stocks such as FibroGen, Kiniksa Pharmaceuticals, and Dynavax. According to TipRanks, Choi has an average return of 7.3% and a 52.22% success rate on recommended stocks.

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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.