Ascendis Pharma's (ASND) Q2 revenue gains appear to have been driven by growing adoption of Yorvipath to treat hypoparathyroidism in adults, Bank of America Securities said in a note to clients Thursday.

The brokerage now expects Ascendis to have a 2025 loss of 3.26 euros ($3.80) per share; in 2026 earnings of 2.67 euros per share, and in 2027 earnings of 10.06 euros per share, on 2025 revenue of 753.4 million euros, 2026 revenue of 1.21 billion euros, and 2027 revenue of 1.80 billion euros.

Bank of America now expects Yorvipath revenue for 2025 at 499 million euros, for 2026 at 806 million euros, and 2027 at 1.2 billion euros.

While the company's revenue from Skytrofa, to treat growth hormone deficiency, missed Q2 analysts' estimates, the recent US Food and Drug Administration approval for use in adults could translate to a long-term growth driver. However, Bank of America's analysts lowered its peak sales forecast for Skytrofa to 520 million euros from 626 million euros previously.

The brokerage said it reiterated its buy rating on the stock and raised its price target to $227 per share from $217.

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