Analyst Charles Duncan of Piper Jaffray came away with an increased confidence in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) after attending an investor meeting with management. More specifically, Duncan is more confident in the Parkinson’s disease psychosis, PDP, market opportunity and NUPLAZID, a treatment for PDP, commercial execution. He is also optimistic about ACADIA’s future plans regarding Alzheimer’s disease, AD, and other neuro-degenerative diseases.
With regards to PDP, early commercial feedback has been positive. This enhances Duncan’s view of long-term potential, “even if the first quarters are primarily driven by operational metrics and not revenue.”
There is also an increasing recognition of symptom burden from clinicians/regulators in terms of ADP/AD, which supports a trial start in AD agitation in the second half of the year. Duncan expects to see exploratory ADP results around the end of 2016, which should “add to the asset value and refine the label-expansion path forward.”
Duncan reiterated his Overweight rating with a price target of $44, marking a 19.5% increase from current levels.
According to TipRanks, the analyst has a yearly average loss of 6.8% and a 40% success rate. The analyst has a 29.8% average return when recommending ACADIA, and is ranked #3,820 out of 4,083 analysts.
TipRanks shows that out of the 7 analysts who rated ACADIA in the last 3 months, 71% gave a Buy rating and 29% gave a Hold rating. The average 12-month price target for the stock is $46.67, marking a 26.86% upside from current levels.