Douglas Tsao, an analyst from H.C. Wainwright, reiterated the Buy rating on Praxis Precision Medicines (PRAX – Research Report). The associated price target remains the same with $120.00.
Douglas Tsao’s rating is based on a combination of factors, primarily focusing on the innovative epilepsy portfolio of Praxis Precision Medicines. Despite a recent setback with the Independent Data Monitoring Committee recommending the cessation of Study 1 for futility, Tsao maintains confidence in the company’s potential for a quick rebound due to several upcoming catalysts in their epilepsy program. This confidence is underpinned by the significant unmet patient needs in the epilepsy market and the potential for Praxis’s treatments to address these needs effectively.
Additionally, Tsao acknowledges the challenges faced by the company, particularly regarding the statistical model used in their studies. However, he notes that the company is taking proactive steps to address these issues by considering amendments to their statistical plan and seeking guidance from the FDA. The safety profile of ulixacaltamide, with no serious adverse events reported, also supports the decision to continue with the studies, as it may yield valuable insights for future research. Overall, Tsao’s Buy rating reflects a belief in the long-term potential of Praxis’s epilepsy treatments, despite the current challenges.
Tsao covers the Healthcare sector, focusing on stocks such as Xenon, Protagonist Therapeutics, and Arcutis Biotherapeutics. According to TipRanks, Tsao has an average return of 9.6% and a 38.99% success rate on recommended stocks.
In another report released today, Truist Financial also maintained a Buy rating on the stock with a $85.00 price target.