Cantor Fitzgerald reiterates Phathom stock as top pick with $29 price target

Investing.com - Cantor Fitzgerald maintained its Overweight rating and $29.00 price target on Phathom Pharmaceuticals (NASDAQ:PHAT) Thursday, naming the stock as a top pick. Currently trading at $11.05, InvestingPro analysis indicates the stock is undervalued, with multiple analysts revising earnings estimates upward for the upcoming period.

The research firm stated that Phathom’s new revenue growth strategy focusing on gastroenterologists (GIs) is logical. Cantor Fitzgerald believes the current valuation reflects peak sales of approximately $450 million, while they see a realistic path to around $1 billion. This optimistic outlook is supported by the company’s impressive gross profit margin of 86.91% and strong revenue growth forecast.

Phathom is currently spending approximately $100 million on its sales force, which includes more than 280 sales representatives. The company considers this the appropriate size as it concentrates efforts on GI specialists rather than primary care physicians.

The firm noted that investors recognize the differentiated profile of VOQUEZNA across acid-related disorders, but questions remain about how the company can grow revenues while reducing operating expenses.

According to Cantor Fitzgerald, Phathom has observed four times the return for the same sales time in GI practices compared to primary care physician practices, supporting their specialized approach.

In other recent news, Phathom Pharmaceuticals reported its Q2 2025 earnings, showcasing a revenue of $39.5 million, which exceeded analysts’ expectations of $36.38 million. The company also reported a loss per share of $0.79, which was better than the anticipated loss of $0.91. In another development, Phathom Pharmaceuticals announced the appointment of Sanjeev Narula as the new Chief Financial and Business Officer. Narula previously held significant financial roles at Intra-Cellular Therapies and Viatris. Furthermore, Phathom Pharmaceuticals clarified that an upcoming Schedule 13D filing by Frazier Life Sciences does not indicate any reduction in Frazier’s ownership in the company. The filing will reflect administrative changes in reporting, affecting how holdings are categorized. These recent developments highlight Phathom Pharmaceuticals’ ongoing strategic and financial adjustments.

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