Thomas Shrader, an analyst from BTIG, has initiated a new Buy rating on Rapport Therapeutics, Inc. (RAPP).
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Thomas Shrader has given his Buy rating due to a combination of factors that highlight the potential of Rapport Therapeutics, Inc.’s lead asset, RAP-219. The drug is an AMPAR modulator that selectively targets TARPγ8, which is associated with neuronal AMPARs, and is being developed for conditions like epilepsy and bipolar mania. The promising open-label Phase 2 efficacy data in focal epilepsy suggests RAP-219 could achieve a best-in-disease profile as an adjunctive therapy, significantly reducing seizure episodes in drug-resistant patients.
Furthermore, the safety profile of RAP-219 is compelling, with a reasonable up-titration schedule and manageable side effects. The drug’s selective inhibition of AMPARs in specific brain regions offers a marketability advantage over broader inhibitors, potentially leading to greater efficacy and safety. Additionally, the potential expansion into bipolar mania treatment aligns with RAP-219’s targeted action in relevant brain areas. The valuation of a $47 price target is supported by a blend of discounted cash flow and peak sales multiple analyses, reflecting confidence in RAP-219’s future market impact.
In another report released on November 14, H.C. Wainwright also maintained a Buy rating on the stock with a $34.00 price target.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RAPP in relation to earlier this year.