Stifel analyst Paul Matteis downgraded Sage Therapeutics (SAGE) to Hold from Buy with a price target of $22, down from $60. The firm says cash from zuranolone will largely be allocated to two drugs, SAGE-324/SAGE-718, where it fundamentally lacks confidence, and Stifel is unsure how much spend will realistically be cut, the analyst tells investors in a research note. Even if the zuranolone launch surprises to the upside, Stifel thinks Biogen (BIIB) is unlikely to buy Sage outright, which may put a ceiling on how high the stock trades, the firm argues.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on SAGE:
- American downgraded, United upgraded: Wall Street’s top analyst calls
- Sage (NASDAQ:SAGE) Plummets On FDA Snub for Zuranolone in Major Depression Disorder
- Biogen price target lowered to $290 from $310 at BofA
- Biogen price target lowered to $269 from $276 at Wedbush
- Wedbush downgrades Sage Therapeutics to Neutral, lowers price target to $22