Canaccord initiated coverage on NEU on the same day today with a...

Canaccord initiated coverage on NEU on the same day today with a price target of $31.

Which one do we trust? I feel Canaccord report is much better well rounded and detailed than the shorter's report.

NEU-ASX| Price A$23.05 | Market Cap A$2,990.6M BUY PRICE TARGET A$31.00

Investment Recommendation

Neuren Pharmaceuticals (NEU) is a commercial stage biotechnology company with a focus on the paediatric neurodevelopmental space. Already commercial Daybue is tracking well in its launch with partner Acadia Pharmaceuticals (ACAD-NASDAQ: US$25.56 | BUY, TP US$40.00 | Sumant Kulkarni, Canaccord Genuity LLC) for Rett Syndrome. We see modest growth prospects for this asset, given it has already secured ~16% of the diagnosed Rett market. More exciting, in our view, is the opportunity for the pipeline-in-a-drug NNZ-2591, the pipeline asset which is similar to Daybue, but boasts an improved safety profile, and which targets four rare paediatric neurodevelopmental indications. Phase II in Phelan McDermid exceeded expectations and we believe success in one more indication could drive meaningful partner interest. We initiate coverage with a BUY rating and price target of $31.00.