Karuna Therapeutics initiated with a Neutral at UBS

UBS analyst Ashwani Verma initiated coverage of Karuna Therapeutics with a Neutral rating and $209 price target. Karuna’s KarXT is an antipsychotic drug that has established a remarkable clinical profile in schizophrenia and is undergoing clinical trials for Alzheimer’s psychosis, the analyst tells investors in a research note. The firm’s KarXT schizophrenia ’30E sales of $1.6B is meaningfully below consensus of $2.8B, but believes the bulk of the downside is already reflected in the stock price.