Madrigal Pharmaceuticals' stock has hit a 20-day low, dropping 3.25% amid broader market declines.
The company has secured an exclusive global license from Pfizer for ervogastat, a clinical-stage oral DGAT-2 inhibitor, with an upfront payment of $50 million. This agreement strengthens Madrigal's position in MASH therapies and follows promising results from a prior Phase 2 study where 72% of patients achieved at least a 30% reduction in liver fat. Despite this positive development, the stock's decline reflects ongoing market concerns, particularly after a recent downgrade by Wolfe Research, which has overshadowed the potential benefits of the new licensing agreement.
The implications of this licensing deal could be significant for Madrigal, as it enhances their treatment portfolio for MASH. However, the market's reaction indicates a cautious sentiment, suggesting that investors are weighing the potential of this new partnership against the backdrop of recent downgrades and overall market performance.
Wall Street analysts forecast MDGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDGL is 636.22 USD with a low forecast of 527.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast MDGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDGL is 636.22 USD with a low forecast of 527.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 494.690
Low
527.00
Averages
636.22
High
900.00
Current: 494.690
Low
527.00
Averages
636.22
High
900.00
Barclays
initiated
$964
2026-01-27
New
Reason
Barclays
Price Target
$964
AI Analysis
2026-01-27
New
initiated
Reason
Barclays initiated coverage of Madrigal Pharmaceuticals with an Overweight rating and $964 price target. Barclays initiated coverage of 12 biotech stocks and assumed coverage of 11 with a positive view of the industry. The analyst likes the setup for the group in 2026. Many biotech stocks remain undervalued, the analyst tells investors in a research note. The firm expects continued mergers and acquisitions, "strong" underlying fundamentals, and less of a focus on drug pricing to act as "significant tailwinds."
Citizens
Outperform
maintain
$527 -> $745
2026-01-20
Reason
Citizens
Price Target
$527 -> $745
2026-01-20
maintain
Outperform
Reason
Citizens raised the firm's price target on Madrigal Pharmaceuticals to $745 from $527 and keeps an Outperform rating on the shares. Rezdiffra's extended intellectual property coverage and multiple shots on goal with combination candidates lends more confidence in MASH revenues extending into the 2040s, the analyst tells investors in a research note.
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Wolfe Research
Outperform -> Peer Perform
downgrade
2026-01-06
Reason
Wolfe Research
Price Target
2026-01-06
downgrade
Outperform -> Peer Perform
Reason
Wolfe Research downgraded Madrigal Pharmaceuticals to Peer Perform from Outperform.
Wolfe Research
Andy Chen
Outperform
to
Peer Perform
downgrade
$579
2026-01-06
Reason
Wolfe Research
Andy Chen
Price Target
$579
2026-01-06
downgrade
Outperform
to
Peer Perform
Reason
As previously reported, Wolfe Research analyst Andy Chen downgraded Madrigal Pharmaceuticals to Peer Perform from Outperform and removed the firm's prior $579 price target. The firm has heard a range of buyside expectation between $4B and $6B peak sales and even on $6B peak sales believes the stock is trading at "the tippy top" valuation after outperformance in November and December, the analyst tells investors. The firm also cites poor Inventiva patent strength.
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.
