PTC Therapeutics (PTCT) is advancing 8% after investment bank Cantor Fitzgerald' hiked its price target on the drug maker's shares to $113 from $76. Cantor kept an Overweight rating on the name.

Why Cantor Is So Bullish on PTCT

The bank believes that, in the wake of the results from the Phase 3 trial of PTCT's drug known as Sepiapterin, the product is viewed as likely to be approved by the FDA. The drug is supposed to treat phenylketonuria, a disease that can result in brain and nerve damage if not addressed.

A laboratory technician in a safety suit analyzing and conducting a series of experiments.

Cantor estimates that the drug can generate a total of $1.5 billion in peak annual revenue for PTCT in the U.S. and Europe. The bank derived its new price target for PTCT largely based on its view of the drug's potential.

Cantor also noted, however, that PTCT's revenue increased almost 13% in the 12 months that ended in September.

In October, the FDA accepted PTCT's filing of an application for the agency's approval of Sepiapterin. The firm has said that the drug can help phenylketonuria patients by allowing them to eat more types of foods.

The Price Action of PTCT Stock

In the last month, PTCT has advanced 9%, while it has gained 24% in the last three months.

While we acknowledge the potential of PTCT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PTCT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.