Karuna Therapeutics initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Jeffrey Hung initiated coverage of Karuna Therapeutics with an Overweight rating and $280 price target. The analyst believes the shares are well positioned for continued appreciation over the next few years with potential approval of KarXT in schizophrenia and Phase 3 adjunctive therapy data in the second half of 2024, as well as Phase 3 psychosis in Alzheimer’s disease data in 2025. KarXT is a differentiated antipsychotic for the treatment of schizophrenia, the analyst tells investors in a research note.