PTC Therapeutics: J.P. Morgan Reiterates Buy Rating Despite Temporary Weakness

J.P. Morgan analyst Brian Cheng reiterates a Buy rating on PTC Therapeutics with a $68 price target, citing a temporary weakness in the stock price due to a recent FDA CRL for Friedreich's ataxia drug application. The analyst is optimistic about the upcoming Sephience launch for PKU and the company's strong financial position, including a $2 billion cash reserve. Wells Fargo also maintains a Buy rating with a $73 price target.

J.P. Morgan analyst Brian Cheng has reiterated his Buy rating on PTC Therapeutics Inc. (NASDAQ: PTCT) with a $68 price target, despite recent setbacks. The analyst cited a temporary weakness in the stock price following a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) regarding the company's drug application for vatiquinone to treat Friedreich’s ataxia [2].

The FDA's decision not to approve vatiquinone, due to insufficient evidence of efficacy, led to a dip in PTCT’s stock price. However, Cheng views this as a temporary weakness and a buying opportunity. The market reaction was anticipated, and the focus now shifts to the upcoming launch of Sephience for PKU, which is expected to perform well based on positive feedback from physicians and payors [1].

Cheng's confidence in PTCT is bolstered by the company's strong financial position, including a $2 billion cash reserve that could be used for business development. The analyst also highlights the potential of other products in PTCT’s pipeline, such as vatiquinone and translarna, which could drive additional growth. The sum-of-the-parts valuation suggests significant upside potential, with a December 2025 price target of $68. Risks include potential challenges in product uptake and regulatory hurdles, but the overall outlook remains positive [3].

Wells Fargo has also maintained a Buy rating on the stock with a $73 price target, echoing the optimistic sentiment surrounding PTCT's future prospects. The company’s strong financial performance in Q2, including revenues of $179 million and a cash reserve of nearly $2 billion, further supports this positive outlook [1].

Despite the recent FDA setback, PTC Therapeutics continues to demonstrate robust financial health and promising growth prospects, making it an attractive investment opportunity for those looking to capitalize on its potential.

References:
[1] https://stockstotrade.com/news/ptc-therapeutics-inc-ptct-news-2025_08_19/
[2] https://www.investing.com/news/assorted/fda-rejects-ptc-therapeutics-vatiquinone-for-friedreichs-ataxia-432SI-4199938
[3] https://www.tipranks.com/news/ratings/ptc-therapeutics-buy-rating-affirmed-amid-temporary-weakness-and-promising-pipeline-ratings?mod=mw_quote_news