Wells Fargo raises Ascendis Pharma stock price target on growth outlook

Wells Fargo has raised its price target on Ascendis Pharma (NASDAQ:ASND) shares, increasing it to $330 from $326. The firm maintains an Overweight rating on the stock after reviewing the company's third-quarter results. Wells Fargo believes the company's operating leverage remains underappreciated and anticipates increasing Street estimates as margins scale.

The company's remarkable gross profit margin of 92% in the last twelve months supports this bullish thesis, according to InvestingPro data. Ascendis Pharma's management expects Yorvipath's consistent growth to continue, with the firm targeting approximately €5 billion in revenue by 2030. International expansion is expected to accelerate as Yorvipath expands its presence in more than 40 countries by 2026 and into an additional 15 countries by 2027.

Wells Fargo's analysts believe Street's $1.6 billion fiscal year 2027 sales estimates are achievable or beatable against the firm's $1.9 billion estimate. The company has shown strong momentum, with revenue growth of 86% over the past year. Ascendis Pharma reported third-quarter earnings and revenue that beat Wall Street expectations, with adjusted earnings of $1.08 per share and total revenue of $369.66 million.

No information on potential mergers was provided in the recent updates, and no changes were reported regarding analyst actions on Ascendis Pharma's stock. Additional company news beyond earnings and revenue was not highlighted in the available data. This article was produced with the assistance of AI and reviewed by an editor.