Jefferies raises Praxis Medicines stock target to $128 on trial success By

On Tuesday, Jefferies upgraded its rating on Praxis Precision Medicines Inc. to a hold rating. (NASDAQ: PRAX), raising the price target to $128 from the previous $75 while maintaining a Buy rating on the stock. This change follows the announcement that PRAX-628 has shown complete suppression in the 45 mg group, exceeding expectations.

The successful results of PRAX-628 pave the way for Praxis to advance to a Phase 2b trial for epilepsy in the second half of 2024, with the potential to expand into epilepsy trials. An analyst from Jefferies indicated that the positive policy report (PPR) supports PRAX’s prospects, expecting future increases and major events to come.

These include the Phase 2 study of PRAX-562 in developmental and epileptic encephalopathies (DEE) expected in mid-2024, and the Phase 3 results of Ulixa in essential tremor (ET) by the end of the year.

In response, Jefferies has updated its Praxis model, adding a point of sale (PoS) to both the PRAX-628 and Ulixa. The review supports the price hike, reflecting the company’s optimism.

The analyst’s statement emphasized the importance of the latest developments and their impact on the calculations, “With the confirmed PPR data, we see a good continuation of PRAX and the upcoming launches including: Ph2 PRAX-562/DEE reading between 24 and Ph3 Ulixa / ET topline. in 2H24. We adjust our model to add PoS of ‘628 and Ulixa, which raises our PT to $128.”

Praxis Precision Medicines specializes in the treatment of central nervous system disorders and has been continuously improving its treatment options. The latest update is very important because it shows the best way to improve the company’s research products.

The market will monitor the progress of these tests, as indicated by the revised price and the stable Buy rating from Jefferies.

InvestingPro Insights

When Praxis Precision Medicines Inc. (NASDAQ:PRAX) moves through key tests and milestones, real-time data from InvestingPro provides a snapshot of a company’s health and market performance. With a market capitalization of $780.67 million, Praxis holds a prominent position in the pharmaceutical industry.

Despite the negative Price-to-Earnings (P/E) ratio of -3.12, indicating that the company is not profitable at the moment, the annual price return of 126.66% shows strong investor confidence in the future of the company, encouraged by the recent success of trials.

InvestingPro’s recommendations show that Praxis has more cash than debt on its website, a sign of financial stability, and that analysts have reviewed its earnings for the coming period, indicating the company’s future financial prospects. However, it is important to note that analysts do not expect the company to make a profit this year, and expect a decline in sales this year.

Praxis also faces challenges in cash burn and weak gross margins. The company’s stock prices have been volatile, but have rebounded significantly over the past year, and liquid assets outweigh short-term positions. These metrics and insights, along with several additional tips available on InvestingPro, can guide investors in their decision making. For those who want a deeper analysis, use the coupon code PRONEWS24 to receive an additional 10% on annual or bi-annual Pro and Pro+ subscriptions InvestingPro.

This article was created with the help of AI and reviewed by an editor. For more information see our T&C.

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