Jefferies Maintains a Buy Rating on Ardelyx (ARDX) With an $8 Price Target

Ardelyx Inc. (NASDAQ:ARDX) is one of the 13 Stocks Under $5 With High Upside Potential. On July 2, Jefferies analyst Dennis Ding maintained a Buy rating on Ardelyx Inc. (NASDAQ:ARDX) with an associated price target of $8.00. The rating was influenced by various factors related to the company’s ongoing legal battle over the classification of Xphozah with CMS.

An aerial view of a pharmaceutical facility, showing the size and scale of the company’s operations.

The analyst reasoned that the recent update on the docket for oral arguments set for September 25 may potentially result in a favorable appeals decision by the end of the year, which in turn could restore Part D coverage for Xphozah.

He considers this restoration to have a significantly positive effect on Ardelyx Inc.’s (NASDAQ:ARDX) growth prospects, as the drug was a significant revenue driver with more than $160 million in its first year of launch.

While Ding acknowledged that the legal case is complicated, the possibility of overturning the Chevron doctrine challenges CMS’s interpretation of law, and therefore may prove beneficial for Ardelyx Inc. (NASDAQ:ARDX).

Ardelyx Inc. (NASDAQ:ARDX) develops and commercializes biopharmaceutical products. It is also involved in the development of an innovative platform that discovers new biological mechanisms and pathways to develop efficacious therapies, reducing the drug-drug interactions and side effects of traditional medicines.

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Disclosure: None.