Canaccord Genuity analyst Sumant Kulkarni has maintained their neutral stance on SAGE stock, giving a Hold rating today.
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Sumant Kulkarni has given his Hold rating due to a combination of factors surrounding SAGE Therapeutics. One of the primary reasons is the uncertainty regarding when a significant increase in sales might occur, coupled with the substantial expenditures SAGE is making to achieve this growth. Additionally, SAGE’s pipeline is in the early stages, making it challenging to assign value to its future products.
Moreover, the recent acquisition announcement by Supernus Pharmaceuticals adds complexity to the situation. While the acquisition could potentially bring synergies and be accretive by 2026, the stock is not currently trading on its fundamentals. Therefore, Kulkarni maintains a Hold rating until the transaction is completed, expected in the third quarter of 2025, while also keeping a close watch on the progress of Zurzuvae, a key product in SAGE’s portfolio.
In another report released today, Piper Sandler also downgraded the stock to a Hold with a $8.50 price target.