Needham analyst Alan Carr was out today with a favorable report on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), after meeting with management for a corporate update and hosting a series of meetings with investors. The analyst reiterated a Buy rating on ACAD, with a price target of $49, which represents a potential upside of 33% from where the stock is currently trading.
Carr wrote, “Given sampling programs and early focus on building brand awareness, it is unlikely there will be any material revenue in 2Q16 and at best modest revenue in 3Q16. Mgmt has characterized launch as an operational success, but is not providing guidance on sales or prescriptions (IMS/WK prescription data are blocked). Nature of discussions with payers is as expected, although only a couple have been completed. Key priority after commercial execution in PDP is life-cycle mgmt. Mgmt expects to build Nuplazid profile over next 2yrs, with Phase 2 Alzheimer’s Disease Psychosis top-line results likely by YE16. We reiterate BUY, with a favorable view towards long-term drug potential in PDP and expectations for label expansion.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a yearly average return of 8.9% and a 45% success rate. Carr has an 36.4% average return when recommending ACAD, and is ranked #325 out of 4075 analysts.
Out of the 12 analysts polled by TipRanks, 10 rate ACADIA stock a Buy, while 2 rate the stock a Hold. With a return potential of 44%, the stock’s consensus target price stands at $53.