Cantor Fitzgerald raises Ultragenyx stock price target on gene therapy approval

Investing.com reports that Cantor Fitzgerald has increased its price target for Ultragenyx Pharma shares (NASDAQ: RARE) to $39 from $33 following regulatory approval of the company's gene therapy. The stock is currently trading at $14.50, which is below the analyst consensus range of $16 to $40, suggesting it may be undervalued according to InvestingPro analysis.

Cantor Fitzgerald raised its probability of success estimate for the therapy to 100%, from 90%, and incorporated a priority review voucher sale into its valuation model.

The approval of FAYUVI, also known as UX111, for the rare genetic neurodegenerative condition Sanfilippo syndrome type A marks a significant milestone for Ultragenyx. This AAV9-based gene therapy treats the condition caused by SGSH mutations. Cantor Fitzgerald now values the MPS IIIA opportunity at approximately $12 to $13 per share.

Despite the approval, Ultragenyx shares have declined 37% year-to-date, presenting potential investment opportunities according to Cantor Fitzgerald's ProTips. The firm maintains an Overweight rating on the stock. Ultragenyx developed FAYUVI in collaboration with Abeona, which also holds an Overweight rating from Cantor Fitzgerald.