J.P. Morgan Reiterates Overweight on SAGE Therapeutics Inc (SAGE) Following Positive Top-Line Phase 2 Data
In a research report released on Monday, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on shares of SAGE Therapeutics Inc (NASDAQ:SAGE), with a price target of $71, after the company reported positive results from its phase 2 trial of SAGE-547 in postpartum depression, sending shares up 38%.
Kasimov commented, “We are very impressed by the randomized Phase 2 results of SAGE 547 in severe postpartum depression, or PPD. Overall, we view the data as a best case scenario for a small Phase 2 trial given the dramatic treatment effect and clean safety profile. From an efficacy standpoint, treatment with ‘547 resulted in very rapid and sustained reductions across several depression endpoints with 70% of patients achieving remission. From the safety side, it appears ‘547 had a more tolerable profile than placebo with fewer adverse events reported in the treatment group. While we’re looking forward to seeing more nuanced data in future presentations and publications, the data were everything we were hoping to see and we aren’t surprised to see the Street’s welcome reaction in early trading this morning.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a yearly average return of -16.5% and a 24% success rate. Kasimov has a -31.4% average return when recommending SAGE, and is ranked #3941 out of 4038 analysts.
Out of the 9 analysts polled by TipRanks, 8 rate SAGE Therapeutics stock a Buy, while 1 rates the stock a Sell. With a return potential of 44%, the stock’s consensus target price stands at $67.13.