Madrigal Pharmaceuticals: Strong Market Performance and Growth Potential with Rezdiffra Leading the NASH Market

Leerink Partners analyst Thomas Smith has maintained their bullish stance on MDGL stock, giving a Buy rating on May 2.

Thomas Smith has given his Buy rating due to a combination of factors that highlight Madrigal Pharmaceuticals’ strong market performance and growth potential. The company reported impressive first-quarter earnings for 2025, with Rezdiffra’s net revenues significantly surpassing both internal estimates and market expectations. This success is attributed to robust patient demand and an expanding prescriber base, indicating that Rezdiffra is gaining traction as a key therapy in the NASH market.
Furthermore, upcoming data releases, including detailed results from the MAESTRO-NAFLD-1 study, are expected to further validate Rezdiffra’s clinical potential, particularly in the cirrhotic F4 population. Additionally, Madrigal’s management is actively seeking opportunities to enhance their NASH pipeline, and a potential EMA regulatory decision in mid-2025 could pave the way for a European launch. These strategic initiatives and strong commercial execution underpin Smith’s optimistic outlook for Madrigal Pharmaceuticals.

Smith covers the Healthcare sector, focusing on stocks such as Immunovant, Viking Therapeutics, and Celldex. According to TipRanks, Smith has an average return of 35.2% and a 48.65% success rate on recommended stocks.

In another report released on May 2, UBS also maintained a Buy rating on the stock with a $458.00 price target.