Ironwood Pharmaceuticals: Medicare Pricing Shifts Impact Fair Value Story

Ironwood Pharmaceuticals' (IRWD) analyst fair value estimate has increased from $2.50 to $4.85 per share due to new Medicare pricing terms for Linzess. Analysts are recalibrating cash flow expectations with a discount rate decrease from 8.71% to 8.50% and revenue growth assumptions rising from 0.94% to 11.87%. Craig Hallum raised its price target to $3.80 from $1.70 and maintained a Hold rating, citing improved value after recent Medicare pricing clarity.