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Investing.com - UBS raised its price target on Acadia Pharmaceuticals (NASDAQ:ACAD) to $32.00 from $22.00 on Monday, while maintaining a Buy rating on the biopharmaceutical company’s shares. The stock, currently trading at $22.28 with a market capitalization of $3.73 billion, appears undervalued according to InvestingPro analysis.
The firm cited increasing confidence in Acadia’s business trajectory under its current CEO, who has made "significant strides" across multiple areas. UBS noted that Acadia’s Daybue treatment has begun to stabilize, while the company has secured extended intellectual property protection for its Nuplazid medication and made progress on pipeline diversification. This progress is reflected in the company’s strong financial health, with InvestingPro data showing impressive revenue growth of 22.42% and a robust current ratio of 2.88.
UBS highlighted management’s recently established long-term guidance as a potential catalyst for continued investor interest. The firm drew comparisons to other small and mid-cap biotech stocks that outperformed after providing peak sales guidance.
Acadia’s management has outlined potential peak sales of $1.5-2.0 billion for its Nuplazid and Daybue products, along with risk-adjusted peak sales of $2.5 billion for pipeline assets. The full peak sales potential across all assets could reach $12 billion, according to company projections.
UBS also pointed to Acadia’s upcoming Prader-Willi syndrome (PWS) clinical trial results, expected in early October 2025, as a potential catalyst that "could potentially generate significant upside" for the stock.
In other recent news, Acadia Pharmaceuticals has been the focus of several analyst reports following its inaugural Research and Development Day. The company showcased a broad pipeline with potential peak sales of $12 billion, significantly exceeding the anticipated peak sales of $1.5 billion to $2 billion from its existing products, Nuplazid and Daybue. H.C. Wainwright maintained its Buy rating with a $32 price target, citing promising early-stage developments and a strategic approach to pipeline management. RBC Capital also upheld an Outperform rating, highlighting the potential of Acadia’s neuropsychiatric pipeline, including ACP-204, which targets disorders with a substantial market opportunity. BMO Capital echoed this sentiment, emphasizing the growth potential of Acadia’s development portfolio beyond its current offerings and reiterating an Outperform rating with a $28 price target.
Canaccord Genuity reaffirmed its Buy rating and $32 price target, expressing confidence in Acadia’s undervaluation based on its approved products and pipeline potential. However, Goldman Sachs maintained a Sell rating with a $15 price target, noting incremental positivity on certain pipeline candidates like ACP-204 but remaining cautious overall. The firm’s focus on neurological and rare disease indications continues to attract attention, with analysts acknowledging both risks and opportunities in Acadia’s development programs. These recent developments reflect a range of analyst perspectives on Acadia Pharmaceuticals, with varying expectations for its future growth and pipeline success.
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