BridgeBio Pharma (BBIO -2.50%) has already been one of biotech's biggest winners over the past two years (up 209% as of July 31). Yet Barclays analyst Eliana Merle believes the rally may not be over.
Merle recently reiterated her overweight rating and $157 price target, implying roughly 95% upside from where the stock is trading now. The bullish thesis here seems to center around the company's newly launched heart drug, Attruby, which could become a much larger commercial success than Wall Street currently expects.
Indeed, this is a reasonable expectation.
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Attruby is off to a strong start
BridgeBio received FDA approval for Attruby in late 2024 to treat transthyretin amyloid cardiomyopathy (ATTR-CM), a progressive disease in which abnormal proteins accumulate in the heart, eventually leading to heart failure. Commercial adoption has been encouraging.
During the first quarter of 2026, BridgeBio generated $180.6 million in Attruby revenue in the U.S., helping total company revenue climb to $194.5 million. Management has also said more than 7,800 unique patients had received prescriptions from over 1,850 prescribers. And as awareness of the drug improves, the addressable market could expand well beyond today's treated population.
NASDAQ: BBIO
Key Data Points
Barclays may still be underestimating the opportunity
Barclays' optimism is based partly on its belief that Attruby's commercial launch is outperforming Wall Street expectations. The firm projects $912 million in U.S. sales for 2026, roughly 10% above the consensus estimate of $826 million.
And BridgeBio isn't just a one-product company, either. It also has two potential approvals on the horizon. The FDA is reviewing BBP-418 for limb-girdle muscular dystrophy, with a decision expected by Nov. 27, 2026, and Encaleret, designed to treat autosomal dominant hypocalcemia type 1 (a rare condition caused by mutations in the CASR gene), which is scheduled for an FDA decision by May 8, 2027. Those programs could further diversify revenue while reducing reliance on a single commercial asset.
The valuation still leaves room for upside
It's no secret that biotech stocks often look expensive before they become profitable, and BridgeBio is no exception. Yes, the company remains unprofitable today as it continues investing heavily in commercialization and late-stage development. That said, Wall Street expects revenue to nearly double this year to roughly $960 million, followed by another sharp increase in 2027 as Attruby sales continue ramping up. Analysts also expect BridgeBio to reach profitability next year.
Of course, that doesn't guarantee Barclays' $157 price target will be reached. Execution still matters. Attruby must continue gaining market share, additional pipeline programs need to deliver, and management has to prove it can successfully transition from a development-stage biotech into a multiproduct commercial company.
Still, I think Barclays' optimism is understandable. BridgeBio now has an approved blockbuster candidate generating meaningful revenue, several late-stage pipeline assets approaching important milestones, and analysts projecting rapid top-line growth over the next two years. If the company continues executing as it has so far, a significantly higher share price doesn't look unreasonable.
