BMO initiates Ionis Pharmaceuticals stock at Market Perform, PT $60

BMO Capital has initiated coverage on Ionis Pharmaceuticals (NASDAQ: IONS) with a Market Perform rating and a price target of $60 per share, according to a report on Tuesday. The current stock price is $59.62, indicating that the target is slightly above the present valuation. However, InvestingPro data suggests that the stock may be overvalued at these levels.

Ionis Pharmaceuticals has shifted from a royalty-based model to one with two self-marketed products, and it holds a third product awaiting approval. The firm is also engaged in numerous partnerships for products in late-stage development. BMO Capital cautioned about two outstanding issues: Tryngolza, which targets severe hypertriglyceridemia and is a new entrant to the market, and the pelacarsen Lp(a) readout, a significant binary event for the company.

Despite a potential positive outcome, BMO Capital believes a successful trial would not fully mitigate the risks. The firm intends to remain on the sidelines until additional information becomes available. This cautious approach mirrors the overall sentiment among analysts, as 5 of them have revised their earnings estimates downward for the forthcoming period, and none anticipate the company to achieve profitability this year.

Investors interested in a more thorough assessment can access 5 additional exclusive insights from InvestingPro, in addition to detailed Pro Research Reports on IONS and over 1,400 other US equities. Recently, Ionis Pharmaceuticals reported financial results for the second quarter of 2026 that exceeded expectations. The company announced an adjusted loss per share of $0.69, which was lower than the analyst's forecast of a $1.06 loss.

Revenue for the quarter amounted to $268 million, surpassing the predicted $190.06 million. This improvement was credited to higher sales of new medications and continued collaboration revenue. In contrast, H.C. Wainwright adjusted its price target for Ionis Pharmaceuticals downward from $125 to $115, while maintaining a Buy rating.

The firm noted that the company reaffirmed its fiscal 2026 guidance for Tryngolza, projecting revenues between $100 million and $110 million. Management attributed these results to physician adoption, payer engagement, and launch execution aligning with their internal projections.