Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Ovid Therapeutics. The associated price target remains the same with $1.50.
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Ram Selvaraju has given his Buy rating due to a combination of factors that highlight the potential of Ovid Therapeutics’ pipeline. One of the primary reasons is the imminent release of early clinical data for OV329, a next-generation GABA-AT inhibitor. This drug is being developed for the treatment of drug-resistant epilepsies and has shown promising preclinical results, indicating it could be significantly more potent than existing treatments like vigabatrin. The ongoing Phase 1 study is assessing various parameters, including safety and tolerability, with plans to initiate a Phase 2a trial in adults with treatment-resistant focal onset seizures early next year.
Additionally, Selvaraju points to the company’s KCC2 portfolio, which he believes is underrated. OV350, the first candidate from this portfolio, is undergoing a first-in-human study and targets psychosis associated with neuronal-synuclein diseases. The potential success of these programs, particularly with the initiation of human trials for OV4071, an oral KCC2 direct activator, could provide significant upside to Ovid’s valuation. These strategic developments, coupled with the unmet needs they address, underpin Selvaraju’s optimistic outlook and the reiterated Buy rating with a 12-month price target of $1.50 per share.
Selvaraju covers the Healthcare sector, focusing on stocks such as Bioxcel Therapeutics, Cognition Therapeutics, and Axsome Therapeutics. According to TipRanks, Selvaraju has an average return of 26.3% and a 57.26% success rate on recommended stocks.
In another report released on August 17, BTIG also maintained a Buy rating on the stock with a $4.00 price target.