Karuna initiated with Neutral, $214 target at Cantor Fitzgerald

Cantor Fitzgerald analyst Charles Duncan last night initiated coverage of Karuna Therapeutics with a Neutral rating and $214 price target. Karuna is a development-stage neuro-innovator developing muscarinic treatments for psychiatric disorders related to psychosis, including schizophrenia and Alzheimer’s disease psychosis, the analyst tells investors in a research note. The analyst says that while KarXT represents a "meaningful paradigm shift" in treating psychosis, its upside value potential is being obscured by "complexifiers" such as competition and a "non-zero risk" of limited use in elderly populations.