Madrigal Pharmaceuticals downgraded, stock drops over 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Should l Buy MDGL?
Source: Fool
Madrigal Pharmaceuticals Inc. experienced a price drop of 5.33%, hitting a 20-day low amid broader market strength, with the Nasdaq-100 up 0.31% and the S&P 500 up 0.27%.
This decline follows a downgrade by Wolfe Research, where analyst Andy Chen lowered the rating from outperform to hold, raising concerns about the company's future performance. Chen set a price target of $572 per share, reflecting skepticism about Madrigal's growth potential despite optimistic revenue projections for its drug Rezdiffra.
The downgrade indicates a cautious sentiment among investors, suggesting that while Madrigal has strong sales potential, the current stock valuation may not be justified, leading to a reevaluation of investment strategies in the biotech sector.
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Analyst Views on MDGL
Wall Street analysts forecast MDGL stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 438.730
Low
527.00
Averages
636.22
High
900.00
Current: 438.730
Low
527.00
Averages
636.22
High
900.00
About MDGL
Madrigal Pharmaceuticals, Inc. is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. The Company’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-b agonist designed to target key underlying causes of MASH. Rezdiffra is the medication approved by the United States Food and Drug Administration (FDA) for the treatment of MASH with moderate to advanced fibrosis (consistent with stages F2 to F3). Rezdiffra is a prescribed medicine used along with diet and exercise to treat adults with nonalcoholic steatohepatitis (NASH) with moderate to advanced liver scarring (fibrosis), but not with cirrhosis of the liver. An ongoing Phase III outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (consistent with stage F4c).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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