RARE - Ultragenyx downgraded to in line at Evercore on 'noise' regarding Angelman candidate

Evercore ISI has downgraded Ultragenyx Pharmaceuticals ( NASDAQ: RARE ) to in line from outperform citing uncertainty with the timing of a late-stage trial for the company's Angelman Syndrome candidate GTX-102.

The firm cut its price target to $60 from $90 (~13% upside based on Friday's close).

Analyst Liisa Bayko said that many investors may not share the same enthusiasm over GTX-102 that the company has. "There are questions on signal to noise that may not be worked out before P3 starts...so we might just have to live with this uncertainty through P3."

She added she expects to hear by the end of the year or early 2023 on data to support phase 3. "If the data are spectacular, it would be convincing in the absence of a control placebo group to decipher signal from noise."

Bayko added that operating expenses are rising as the company is spending more money to support late-stage trials. In their recent Q2 2022 results , Ultragenyx ( RARE ) didn't address when it might turn a profit, except to say revenue growth combined with slower acceleration in spend can get them there.

Read why Seeking Alpha contributor Avisol Capital Partners is bullish on Ultragenyx's ( RARE ) prospects.

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