Jan. 20 at 3:46 PM
Citizens⬆️the PT on
$MDGL to
$745 from
$527 and reiterated at Market Outperform.
$IVA $NVO $VKTX $ALGS ALT AGMT LLY
Citizens said in its note:
MDGL shares have pulled in to start 2026 (down 14%), which we think is a knee-jerk reaction to the company not getting bought and the ervogastat deal signaling that a near-term buyout is unlikely.
Taking a step back, we consider the potential combo candidates as upside to our valuation, but they diversify the IP risk on Rezdiffra and give us more confidence in the longer-term revenue tail.
Management is building out its pipeline from a position of strength, with the Rezdiffra launch exceeding expectations with plenty of room to grow, we like the acquisition candidates to date that are good strategic fits with Rezdiffra, and we are looking forward to the MAESTRO-NASH OUTCOMES data in 2027 in F4 cirrhotics, which, in our view, could double Rezdiffra's commercial opportunity (upside to our valuation today).
