The analyst consensus price target for Madrigal Pharmaceuticals has increased by approximately $23 to $536, as analysts cite continued strength from Rezdiffra as well as improved long-term profitability expectations.

Analyst Commentary

• Bullish analysts have increased price targets for Madrigal Pharmaceuticals, emphasizing Rezdiffra’s ongoing outperformance and supportive market dynamics, even as new competitors enter the F2-F3 MASH segment.
• Several updates reflect greater peak penetration assumptions for Rezdiffra in key patient populations, which signals confidence in the product's commercial execution and long-term adoption.
• Recent financial results for Madrigal were described as notably strong, leading to improved projections for profitability by 2026 and perceptions of reduced near-term risk to valuation.
• The company’s expanded opportunities in Europe, following regulatory approvals, and a well-established position as a first-line therapy are seen as key drivers for accelerated revenue growth and broader market leadership in MASH treatment.

• Bearish analysts continue to highlight concerns about intensifying competition, particularly as other treatments like Wegovy target the same patient segments.
• Some viewed the absence of an acquisition as a possible missed opportunity, which could limit near-term upside in corporate value compared to peers involved in recent M&A activity.
• Despite strong early launch performance, uncertainty remains regarding Madrigal’s ability to sustain aggressive growth targets after initial patient penetration, especially as competitive pricing pressures mount.

What's in the News

• Madrigal Pharmaceuticals announced multiple MASH and Rezdiffra data presentations at the American Association for the Study of Liver Diseases annual meeting. These included new analyses for patients with advanced MASH for whom no approved therapies currently exist (Key Developments).
• Rezdiffra became the first approved medication for the treatment of MASH in both the United States and Europe, following a conditional marketing authorization from the European Commission (Key Developments).
• Rezdiffra met both fibrosis improvement and MASH resolution primary endpoints in the pivotal Phase 3 MAESTRO-NASH trial. The medication also demonstrated reductions in liver stiffness, liver fat, liver enzymes, and atherogenic lipids (Key Developments).
• At one year, 91% of patients treated with Rezdiffra 100 mg achieved improvement or stabilization of liver stiffness, as measured by vibrational-controlled transient elastography (Key Developments).
• Rezdiffra is indicated for adults with noncirrhotic MASH with moderate to advanced liver fibrosis in the U.S. and Europe. It is not approved for patients with cirrhosis in any geography (Key Developments).

Valuation Changes

• The Fair Value Estimate has risen slightly, increasing from $512.43 to $535.71 per share.
• The Discount Rate has increased marginally from 6.84% to 7.02%, reflecting modestly higher perceived risk.
• The Revenue Growth projection has fallen significantly, declining from 70.18% to 56.21%.
• The Net Profit Margin is expected to improve, rising from 32.48% to 36.91%.
• The Future P/E Ratio estimate has decreased from 17.41x to 15.76x, suggesting higher anticipated profitability relative to earnings.