Analysts weighed in on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) with bullish sentiments following the company’s investor meeting this week.
At the investor meeting, management assured that pimavanserin is on schedule to be submitted to the FDA by year-end. In this case, pimavanserin is being tested to treat Parkinson’s psychosis (PDP). The drug will be marketed as NUPLAZID and has completed Phase III testing in which the drug successfully achieved its primary and secondary endpoints.
On August 27, analyst Ritu Baral of Cowen & Co. reiterated an Outperform rating on Acadia with a $50 price target. Baral’s rating came after the meeting with Acadia management, where they discussed the timeline for pimavanserin. The analyst commented, “Timing and conduct of the ongoing Ph2 Alzheimer’s Psychosis trial was also discussed, and [management] remains optimistic for data in mid 2016.”
Ritu Baral has rated Acadia Pharmaceuticals three times since November 2014, earning a 50% success rate recommending the stock and a +10.5% average return per rating when measured over a one-year horizon and no benchmark.
Separately on August 27, analyst Charles Duncan of Piper Jaffray upgraded Acadia from Neutral to Overweight but maintained his price target of $48. Duncan noted, “ACAD shares have pulled back ~25% month to date (vs. NBI down ~10.5%), due to market volatility and increased perceived uncertainty following updates on the 2Q earnings call.” The analyst acknowledges the risk around “the need for additional financing to commercialize NUPLAZID, unknown regulatory reaction to long-term safety data, and delayed enrollment of the ADP trial.” However, Duncan believes that “execution risk has been reduced with the recently announced manufacturing collaboration (with BASF Pharma), and investor expectations on remaining risks are now better priced into the stock at current levels.”
Charles Duncan has rated Acadia five times since April 2013, earning a 100% success rate recommending the stock and a +50.4% average return per ACAD rating when measured over a one-year horizon and no benchmark.
According to the five analysts polled by TipRanks in the last three months, all five are bullish on Acadia. The average 12-month price target on the stock is $50.40, marking a 32% potential upside from where shares are currently trading.