Thomas Shrader, an analyst from BTIG, has initiated a new Buy rating on Praxis Precision Medicines (PRAX).
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Thomas Shrader has given his Buy rating due to a combination of factors that highlight the promising future of Praxis Precision Medicines. The company is developing a range of therapeutics targeting central nervous system diseases, with three key assets showing significant potential. The first, ulixacaltamide, has demonstrated positive results in essential tremor, a condition with a substantial unmet need, and is projected to achieve over $5 billion in peak sales.
Additionally, Praxis’s sodium channel modulators, vormatrigine and relutrigine, have shown impressive data in epilepsy and developmental and epileptic encephalopathies (DEEs), respectively, each with the potential to reach $1 billion in peak sales. The company’s antisense oligonucleotide platform also shows promise, particularly with elsunersen, which has de-risked their ASO platform. Shrader’s valuation of Praxis, with a price target of $424, is based on a blend of discounted cash flow and peak multiple valuations, reflecting the company’s robust pipeline and market opportunities.
According to TipRanks, Shrader is a 3-star analyst with an average return of 1.4% and a 37.58% success rate. Shrader covers the Healthcare sector, focusing on stocks such as Gain Therapeutics, Biohaven Ltd., and Harrow Health.
In another report released on November 14, H.C. Wainwright also maintained a Buy rating on the stock with a $258.00 price target.