Madrigal Pharmaceuticals Downgraded by Wolfe Research, Stock Drops Over 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Source: Fool
- Rating Downgrade Impact: Wolfe Research analyst Andy Chen downgraded Madrigal's rating from outperform to hold, resulting in a more than 5% drop in stock price during the trading session, indicating market concerns about the company's future performance.
- Price Target Analysis: Chen set a price target of $572 per share, primarily based on the high valuation of Madrigal's stock relative to its performance, reflecting a cautious investor sentiment regarding its growth potential.
- Revenue Expectation Challenges: Despite optimistic projections for Madrigal's Rezdiffra drug, with annual revenue estimates reaching $6 billion, Chen expressed skepticism about this outlook, suggesting that even achieving it would not justify the current high valuation.
- Market Reaction: Madrigal's stock experienced significant gains following the FDA approval of Rezdiffra, but analysts believe this success is already priced in, prompting investors to consider more attractive biotech stocks.
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Analyst Views on MDGL
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
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
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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