Analysts on Wall Street Lower Ratings for These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.

05. PTC Therapeutics, Inc. (NASDAQ:PTCT)

Price Reaction after the Downgrade: +0.08 (+0.29%)

On December 19, Morgan Stanley analyst Jeffrey Hung downgraded PTC Therapeutics, Inc. (NASDAQ:PTCT) from Equalweight to Underweight, within the biotechnology industry. Alongside the downgrade, the analyst set a price target of $28.00. The downgrade indicates a more cautious view on PTC Therapeutics, Inc. (NASDAQ:PTCT) potential compared to the previous Equalweight rating. Despite the downgrade, the market response was a minimal positive price reaction, as indicated by a +0.08 (+0.29%) increase. This modest reaction could be interpreted in various ways, such as investors viewing the downgrade as less severe than anticipated, or other factors influencing the stock’s performance on that day. Hung’s note highlighted that while the sepiapterin profile in phenylketonuria (PKU) remains compelling, the firm sees better risk-adjusted opportunities elsewhere in its pharmaceutical coverage. This strategic decision is attributed to greater uncertainty stemming from regulatory headwinds faced by multiple programs.

TimesSquare U.S. Small Cap Growth Strategy made the following comment about PTC Therapeutics, Inc. (NASDAQ:PTCT) in its Q2 2023 investor letter:

“PTC Therapeutics, Inc. (NASDAQ:PTCT), a biopharmaceutical company focused on the discovery and development of medicines for patients with rare disorders, lost -16%. During the quarter, management reported their phase III trial for Friedreich’s ataxia (FA) did not achieve statistical significance. They also announced a strategic reorganization of their pipeline and have chosen to discontinue pre-clinical gene therapy projects in both FA and Angelman’s Syndrome. Headcount will be reduced as the new CEO prefers to deploy capital more thoughtfully.”