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ashgood123

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11/10/23

08:47

Post #: 70279171
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Originally posted by JM12: ↑

nice to see acadia jump 7.7%, lets hope it rubs off on neu. similar narrative should apply, vastly undervalued and good time for investors to build a position, blockbuster sales potential for daybue, etc

https://www.********/investing/2023/10/10/why-acadia-pharmaceuticals-stock-is-rising-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

An analyst upgrade is sparking a rally in the drugmaker's shares today.
What happened
Acadia Pharmaceuticals(ACAD7.73%)is having a strong session Tuesday. Specifically, the drugmaker's shares were up by a healthy 6.7% on moderate volume at 10:02 a.m. ET.
What's sparking this rally? Ahead of the opening bell,JPMorgananalyst Tessa Romero upgraded the bank's outlook from neutral to overweight and raised its 12-month price target on the stock to $32 per share (up from $29 per share). This updated price target implies a noteworthy 47% upside potential relative to Acadia Pharmaceuticals' closing price on Monday.
So what
Despite an impressive 44.6% gain year-to-date, Acadia Pharmaceuticals stock has actually been struggling in recent weeks. Thanks to concerns about a patent dispute, rising bond yields, and a general aversion to risk by some investors, the biotech's shares have lost nearly a third of their value since hitting a 52-week high back in late July. As a result, this analyst upgrade probably couldn't have come at a better time.

Acadia Pharmaceuticals stock screens as an attractive, fundamentals-driven growth story, despite the patent and macro headwinds. Driving this point home, thedrugmaker's stockis presently trading at only 3 times projected 2025 sales, a bargain-basement valuation for a company on track to post double-digit sales growth in both 2023 and 2024.

Now what
Is Acadia Pharmaceuticals stock still a buy? I think so. The company's newly approved Rett syndrome medication, Daybue, hasblockbuster sales potential, and its Parkinson's disease psychosis drug, Nuplazid, is a proven revenue generator. Taken together, I think these two drugs will drive the company to consistent levels of profitability perhaps as soon as 2024. With its shares trading well below recent highs, I think now is a good time to start building a position in this mid-cap biotech.

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In time, and perhaps as soon as the coming weeks, we suspect the focus of the stock to return to launch execution, particularly around Daybue’s 3Q print, as well as 4Q guidance,” commented the analysts at JPMorgan.According to the firm, Acadia continues to hint at a successful launch, suggesting that existing sell-side estimates might underestimate the franchise's progress for the rest of 2023 and beyond. Consequently, the 2023 Daybue forecast is upped to $190 million from the previous $142M

this is interesting. They upped their 2023 forecast to $190m suggesting ~$60m for Q3 and $105m for Q4…if that comes to fruition, FY2024 full year sales is likely to exceed $500m

NEU Price at posting: $11.00 Sentiment: Buy Disclosure: Held
40 Upvote

5 Great analysis

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