Needham analyst Ami Fadia has reiterated their neutral stance on SAGE stock, giving a Hold rating on April 21.
Ami Fadia has given his Hold rating due to a combination of factors influencing SAGE Therapeutics. The adjustment in the expected earnings per share (EPS) for both the first quarter and the full fiscal year 2025 indicates a more cautious outlook on the company’s financial performance. The EPS for the first quarter was revised from -$0.76 to -$0.99, and for the full year from -$2.80 to -$3.63, reflecting potential challenges in achieving profitability.
Ami Fadia also noted a slight reduction in the collaboration revenue forecast for Zurzurvae, from $15.9 million to $14.2 million, based on current prescription trends. Despite this, the end-market sales estimate for Zurzurvae remains aligned with consensus expectations at $28.3 million. The Hold rating is maintained as the analyst awaits further clarity from the company’s management regarding strategic reviews, growth trends for Zurzurvae, and developments in their pipeline.
In another report released on April 21, Morgan Stanley also maintained a Hold rating on the stock with a $9.00 price target.