JPMorgan has upgraded Ionis Pharmaceuticals (NASDAQ:IONS) from Neutral to Overweight and significantly raised its price target to $80.00 from $49.00.
The upgrade follows an active September for Ionis, which included positive results for olezarsen in severe hypertriglyceridemia (sHTG) showing AP benefit, and successful Phase III data in Alexander Disease, along with encouraging pipeline updates at the company’s Innovation Day. The company’s revenue has shown solid growth of 16% over the last twelve months.
Despite Ionis shares already rallying 97% year-to-date, compared to the NBI and XBI indices gaining only 18% and 15% respectively, JPMorgan believes the stock will continue to outperform based on revised financial models.
JPMorgan has specifically increased estimates for olezarsen based on strong AP benefit data, while also adding risk-adjusted credit for ION582 (Angelman syndrome) and zilganersen (Alexander Disease) in their valuation model.
The firm views Ionis as entering a new phase with multiple wholly-owned and partner product launches underway or approaching, creating a clearer path to breakeven and profitability, with additional upside potential from upcoming pipeline readouts.
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