Acadia Pharmaceuticals upgraded to Buy at BofA following 25% pullback

As previously reported, BofA analyst Tazeen Ahmad upgraded Acadia Pharmaceuticals (ACAD) to Buy from Neutral with an unchanged price target of $29. The recent 25% pullback in share price is not related to fundamentals and more related to macro factors, says the analyst, who has no change to the firm’s fundamental view of the company. The firm, which thinks stable Nuplazid sales in Parkinson’s psychosis provides “protection against further downside,” models $888M in 2029 peak sales, which it adds “could be conservative if recent field force investments accelerate growth.” BofA also estimates an $11B pipeline opportunity, which it thinks is “currently discounted.”