ACADIA Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Sean Laaman from Morgan Stanley maintained a Hold rating on the stock and has a $24.00 price target.
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Sean Laaman has given his Hold rating due to a combination of factors surrounding ACADIA Pharmaceuticals’ current market position and future prospects. The recent failure of the ACP-101 Phase 3 trial has shifted the company’s focus back to its commercial products, specifically Nuplazid and Daybue. Laaman anticipates that the upcoming 3Q earnings call will provide insights into the performance of these products, with particular attention on the growth of new patients for Daybue and its international expansion efforts.
Additionally, the decision to halt the development of ACP-101 allows ACADIA to reallocate resources towards other promising pipeline projects, such as ACP-204 for Alzheimer’s disease psychosis and ACP-711 for essential tremor. While these developments hold potential, the outcomes are uncertain, leading Laaman to adopt a cautious stance. The Hold rating reflects a balanced view of the company’s current challenges and opportunities, suggesting that investors may want to wait for more clarity on the pipeline’s progress before making significant investment decisions.
In another report released on October 8, Mizuho Securities also maintained a Hold rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACAD in relation to earlier this year.