"Top Pick for 2024": Analyst Bullish On Phathom Pharmaceuticals On Voquezna Launch In Erosive GERD, Projecting $55.6M In Sales
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Joseph Stringer has reiterated a Buy rating on Phathom Pharmaceuticals (NASDAQ:PHAT), raising the price target to $26 from $23 and adding it to the Needham Conviction List. Phathom's stock is expected to perform strongly in 2024 due to the launch of Voquezna in Erosive GERD and its anticipated approval and launch in Non-Erosive GERD (NERD). The analyst projects $55.6 million in Voquezna sales for 2024, which is above the consensus estimate of $46 million. Voquezna is seen as a potential best-in-class acid blocker with significant peak sales potential in various indications. Phathom's cash runway is expected to last through 2026, covering multiple value-driving events. PHAT shares recently traded slightly lower at $8.98.
January 05, 2024 | 6:52 pm
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POSITIVE IMPACT
Phathom Pharmaceuticals' stock is favored by Needham analyst Joseph Stringer, with a raised price target and inclusion in the Needham Conviction List due to the potential success of Voquezna in treating GERD.
The positive outlook from the analyst, including a raised price target and the addition to the Needham Conviction List, suggests strong confidence in Phathom Pharmaceuticals' future performance. The projected sales figures for Voquezna are significantly higher than consensus estimates, indicating a bullish stance on the stock's potential growth. The stock's performance relative to the market indices and the expected cash runway through 2026 further support the positive impact on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Vaxcyte, Inc. was replaced by Phathom Pharmaceuticals on the Needham Conviction List, which may imply a relatively less favorable outlook for PCVX from Needham.
Being replaced on the Needham Conviction List by Phathom Pharmaceuticals suggests that Needham may see more potential in PHAT relative to PCVX in the near term. This could potentially have a negative impact on investor sentiment towards PCVX, although the specific reasons for the replacement are not detailed, which affects the confidence level of this analysis.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50