Madrigal Pharmaceuticals' (MDGL) shares remain undervalued given the company's long-term potential opportunity from its Rezdiffra MASH business, UBS said Thursday in a note.
The firm's upbeat outlook comes a day after the company said patients with metabolic dysfunction-associated steatohepatitis, or MASH, treated with its Rezdiffra drug showed "marked reductions" in liver stiffness.
UBS said the Rezdiffra launch is expected to accelerate significantly in 2025, supported by robust demand and manageable competition.
The firm sees potential for outperformance relative to consensus estimates for the the company this year as "strong MASH launches" should continue.
UBS reiterates its buy rating on the stock with a $441 price target.
Price: 349.03, Change: -6.85, Percent Change: -1.92