Analyst Ritu Baral from TD Cowen maintained a Hold rating on SAGE Therapeutics (SAGE – Research Report) and keeping the price target at $9.00.
Ritu Baral’s rating is based on several key considerations surrounding SAGE Therapeutics’ current financial and strategic position. The company’s collaboration revenues from Zurzuvae showed growth, yet they fell short of market expectations, which may suggest challenges in meeting financial targets. Additionally, SAGE reported a substantial net loss, indicating ongoing financial pressures despite a solid cash runway projected to last until mid-2027.
Another factor influencing the Hold rating is the completion of the joint salesforce expansion for Zurzuvae, which is expected to drive future growth. However, the reliance on OBGYNs for prescriptions and the need for increased disease awareness campaigns highlight the challenges in scaling up sales. The strategic exploration by the Board of Directors without any disclosed outcomes also adds a layer of uncertainty to the company’s future direction. These elements combined suggest a cautious approach, justifying the Hold rating.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $9.00 price target.