Andrew Tsai, an analyst from Jefferies, maintained the Buy rating on Xenon (XENE – Research Report). The associated price target is $65.00.
Andrew Tsai has given his Buy rating due to a combination of factors that make Xenon Pharmaceuticals an attractive investment opportunity. The company’s stock appears undervalued at its current market capitalization, especially considering the potential catalysts on the horizon. In 2025, Xenon is expected to release significant data from its clinical trials, including a Phase II readout for major depressive disorder (MDD) and a Phase III dataset for focal epilepsy. These events could substantially boost the stock price, with the epilepsy data alone having the potential to increase the stock by 30% if positive.
Moreover, Tsai highlights that the broader investor interest in Xenon has increased, driven by the anticipation of the upcoming epilepsy data. Despite a recent decline in stock price, attributed to macroeconomic factors rather than company fundamentals, the analyst remains confident in the company’s prospects. The potential for $1 billion in peak sales for focal epilepsy and additional opportunities in MDD and bipolar disorder further support the Buy rating. Tsai also notes the strategic importance of upcoming investor events, which will showcase Xenon’s pipeline and reinforce its growth potential.
XENE’s price has also changed moderately for the past six months – from $40.710 to $33.030, which is a -18.87% drop .