It’s a big day for Galmed Pharmaceuticals (NASDAQ:GLMD). The drug maker released positive phase Phase 2b data for Aramchol in NASH that had many, even some of the biggest bears on the stock, commending the headway Galmed has made. The data demonstrated effects on liver fat but perhaps more important on fibrosis and NAS score, as well as resolution of NASH.
In reaction, Maxim analyst Jason McCarthy reiterated a Buy rating on GLMD, while boosting the price target to $30 (from $14), which implies an upside of 57% from current levels.
McCarthy noted, “Our model has been extended to 2028 and risk cut reduced to 15%, from 30%, as well as other minor adjustments. The net effect is our price target increases to $30, from $14, implying a market capitalization of $450M, which may be viewed as “conservative” given the rise in valuations of others in the space, including Madrigal (MDGL – NR) which also completed a P2 study (smaller and shorter trial than Galmed too).”
“The company will present more detailed data at a conference and likely publish the results in a major journal. End of phase 2 meetings are also next which should set the stage for a pivotal program. The question is will a partner come on board? Aramchol is now one of the most clinically advanced NASH assets in the space with “good” data, which to us also could imply a scarcity value as well,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a yearly average return of 7.9% and a 44.7% success rate. McCarthy has a 14.6% average return when recommending GLMD, and is ranked #740 out of 4829 analysts.
The rest of Wall Street echoes McCarthy’s bullish play, as TipRanks analytics exhibit GLMD as a Strong Buy. Out of 4 analysts polled in the last 12 months, all 4 are bullish on Galmed stock. With a return potential of nearly 62%, the stock’s consensus target price stands at $31.