In a report released today, Jay Olson from Oppenheimer initiated coverage with a Buy rating on SAGE Therapeutics (NASDAQ: SAGE) and a price target of $170. The company’s shares closed yesterday at $124.48.
Olson observed:
“We initiated coverage of SAGE on Oct. 10 with an Outperform rating and received feedback from several investors. Those who own SAGE agree with our view that the sell-off ahead of the November 2 FDA Ad Comm presents an attractive buying opportunity for a stock that is -24% YTD (vs NBI +8% and S&P500 +5%). Others are concerned about the binary event risk. In either case, there seems to be a consensus among bulls and bears alike that SAGE-217 is the primary driver of valuation while the Ad Comm for IV brexanolone provides an important read across whatever the outcome. We remain bullish on the Ad Comm and believe it should unlock significant shareholder value if favorable. Please see below for more details.”
According to TipRanks.com, Olson is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -3.1% and a 41.5% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Eiger Biopharmaceuticals, and Conatus Pharmaceuticals.
SAGE Therapeutics has an analyst consensus of Strong Buy, with a price target consensus of $220, representing a 76.7% upside. In a report issued on October 11, Morgan Stanley also maintained a Buy rating on the stock with a $230 price target.
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Based on SAGE Therapeutics’ latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $90 million and GAAP net loss of $16.98 million. In comparison, last year the company had a GAAP net loss of $73.72 million.
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SAGE Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of novel medicines to treat life-altering central nervous system. Its programs include brexanolone, which is an acute interventional treatment for postpartum depression; and SAGE-217, an oral therapy for treatment of various CNS disorders. The company was founded by Steven Marc Paul and Douglas Covey in April 2010 and is headquartered in Cambridge, MA.
