H.C. Wainwright analyst Ram Selvaraju has reiterated their bullish stance on OVID stock, giving a Buy rating on March 12.
Ram Selvaraju has given his Buy rating due to a combination of factors related to Ovid Therapeutics’ strategic pipeline reprioritization and the potential of its KCC2 portfolio. The company has shifted its focus towards earlier-stage assets, OV329 and OV350, while preparing OV4071 for clinical entry. Although OV888’s near-term progression to Phase 2 is uncertain, Selvaraju highlights the multiple potential value inflection points expected over the next 12-15 months, which include significant milestones for OV329, OV350, and OV4071.
The prominence of Ovid’s KCC2 portfolio, particularly OV350, also underpins the Buy rating. OV350, a novel KCC2 direct activator, shows higher potency and fewer side effects compared to existing treatments, with potential use as both monotherapy and in combination with other drugs. The initiation of a Phase 1 trial for OV350 and the development of OV4071, the first oral KCC2 direct activator, suggest promising therapeutic applications in conditions with unmet needs like Parkinson’s disease and Lewy body dementia. These advancements, although not yet factored into the valuation, could significantly enhance Ovid’s market position if successful.
Selvaraju covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Vanda, and Emergent Biosolutions. According to TipRanks, Selvaraju has an average return of 5.0% and a 39.07% success rate on recommended stocks.
In another report released on March 12, Wedbush also maintained a Buy rating on the stock with a $3.00 price target.