Madrigal Pharmaceuticals (MDGL: NASDAQ)

Madrigal Pharmaceuticals is at the forefront of developing pharmaceutical treatments for non-alcoholic steatohepatitis (NASH). Its groundbreaking drug, Rezdiffra, is the only approved medicine for treating metabolic-associated steatohepatitis (MASH), positioning Madrigal uniquely in this burgeoning market. The company’s ongoing post-approval research aims to expand Rezdiffra’s indications to treat more severe cases of the disease, which could significantly increase its market potential.

The global market for MASH drugs is projected to be worth between $12 billion and $35 billion annually. With Rezdiffra being the sole approved treatment, Madrigal stands to capture a substantial share of this market, leading to significant returns for shareholders. In the U.S. alone, there are approximately 1.5 million diagnosed cases of MASH, a serious condition that often progresses to cirrhosis and liver failure. Given the economic burden of MASH, a market worth $20 billion annually is plausible.

Analysts have optimistic projections for Rezdiffra, with some forecasting peak sales exceeding $5 billion. This positive outlook is bolstered by the ongoing clinical trials for the drug’s application in cirrhosis treatment, expected to conclude between 2026 and 2027. Successful trials could lead to an expanded indication approval within the next three years, further solidifying Madrigal’s market position.

Madrigal’s innovative approach to treating MASH, combined with its strong market potential and positive analyst expectations, makes it an attractive investment opportunity. We are bullish on MDGL above $255.00-$257.00, with an upside target of $430.00-$440.00.

Dutch Bros (BROS: NYSE)

Dutch Bros operates drive-thru coffee shops in the United States, offering signature, bold beverages that distinguish it from other coffee chains. The company emphasizes friendly customer service and creating a fun atmosphere while maintaining quick service through its robust drive-thru business. As a relatively small and agile company, Dutch Bros is well-positioned to grow and meet consumer demand efficiently.

During inflationary periods, Dutch Bros’ value proposition becomes particularly advantageous. Its products are cheaper than Starbucks, attracting customers seeking a better value without compromising their coffee experience. This positioning helps Dutch Bros gain market share as consumers look for cost-effective alternatives.

The new CEO, Christine Barone, could be the catalyst for Dutch Bros’ next growth phase. With extensive experience in consumer-facing roles, including leadership positions at Starbucks, she brings valuable insights into the coffee business and evolving customer preferences.

We are bullish on BROS above $37.00-$38.00, with an upside target of $55.00-$56.00.

Ethereum (ETHUSD)

Cryptocurrencies have been volatile over the past couple of weeks, generally trending downward. This week, we’re focusing on Ethereum, which has shown notable relative strength against Bitcoin. Ethereum recently bounced off support in the $2,900-$3,100 range during the latest market slide. Although prices dipped slightly below this support zone, they never closed below it, underscoring its technical significance.

Currently, Ethereum remains neutral above the $2,900-$3,100 range. It needs to close above $3,400-$3,600 to turn bullish again. If it loses the $2,900-$3,100 support, another drop to the $2,600-$2,650 zone is possible.

In the bigger picture, Ethereum is still consolidating within a broadening wedge formation. This pattern bodes well for future bullish prospects, suggesting potential upward movement once current resistance levels are overcome.