Analyst Tazeen Ahmad of Bank of America Securities reiterated a Hold rating on ACADIA Pharmaceuticals (ACAD – Research Report), retaining the price target of $18.00.
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Tazeen Ahmad has given his Hold rating due to a combination of factors related to ACADIA Pharmaceuticals’ current market performance and future prospects. The company reported a decline in Daybue sales for the first quarter, which was in line with management’s guidance, but still below consensus expectations. Despite this, there was a record number of unique patients using Daybue, and management remains optimistic about future sales growth due to an expanded salesforce and increased penetration in community settings.
Additionally, ACADIA’s Nuplazid revenues exceeded expectations, and the company maintained its guidance for 11% year-over-year growth. However, there is still uncertainty regarding the peak sales potential. The company’s pipeline developments, including the anticipated phase 3 readout for ACP-101 and the progress on ACP-204, are promising, but the termination of two partnered assets adds some risk. Overall, while there are positive indicators, the Hold rating reflects a cautious approach as the analyst awaits further validation of growth trends and clinical data.
Ahmad covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Sarepta Therapeutics, and Incyte. According to TipRanks, Ahmad has an average return of -2.7% and a 47.53% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $20.00 price target.