Wells Fargo downgrades Cerevel on lack of catalysts until 2024

Wells Fargo analyst Mohit Bansal downgraded Cerevel Therapeutics (CERE) to Equal Weight from Overweight with a price target of $30, down from $38. The darigabat timeline shift removes a key 2023 catalyst and the stock could be range-bound due to a lack of catalysts until 2024, the analyst tells investors in a research note. The firm now favors shares of Travere Therapeutics (TVTX) and Xenon Pharmaceuticals (XENE) for smaller cap biotech exposure. Cerevel highlighted external factors such as staffing challenges and slow enrollment in clinical trials as the reasons for darigabat delay, Wells points out. It also believes the risk/reward for the emraclidine Phase 2 data "looks less compelling" given that the Street already assigns a high probability of success.