Analyst Ritu Baral from TD Cowen maintained a Hold rating on SAGE Therapeutics (SAGE – Research Report) and keeping the price target at $9.00.
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Ritu Baral has given her Hold rating due to a combination of factors impacting SAGE Therapeutics. The company’s financial performance in the fourth quarter of 2024 showed some challenges, with collaboration revenues from Zurzuvae falling short of expectations due to inventory drawdown. Despite a significant increase in prescription shipments, this did not translate into proportional revenue growth, highlighting potential issues in inventory management and sales execution.
Additionally, while the company has a strong cash position expected to sustain operations until mid-2027, there are concerns about the high costs associated with research and development, as well as sales and general administrative expenses. The anticipated reductions in operational expenses in 2025 could be a positive sign, but the restructuring costs and current financial losses suggest caution. These elements, combined with the need for further data and expansion efforts, contribute to a Hold rating as the outlook remains uncertain.
In another report released on January 29, Mizuho Securities also maintained a Hold rating on the stock with a $9.00 price target.