Baird raises Praxis Precision Medicines stock price target to $275 on positive trial results

Investing.com - Baird raised its price target on Praxis Precision Medicines Inc. (NASDAQ:PRAX) to $275.00 from $76.00 while maintaining an Outperform rating. The stock, currently trading at $174.86 with a market capitalization of $3.74 billion, has shown remarkable momentum with a 92% gain over the past six months, according to InvestingPro data.

The significant price target increase follows positive results from the company’s ESSENTIAL3 Phase 3 clinical program, which Baird described as "thesis changing" for the biotech firm.

The trial results potentially provide a near-term approval pathway for Praxis in a large indication where the company currently faces no competition, according to Baird’s analysis.

Baird noted that essential tremor (ET) alone represents a blockbuster opportunity for Praxis, while the robust effects demonstrated in the trial suggest ulixacaltamide could be a "pipeline in a drug" with multiple potential applications.

The firm’s new price target is based on projected worldwide peak sales of $5.15 billion for Praxis’s treatments, unadjusted for risk factors.

In other recent news, Praxis Precision Medicines has reported positive results from its Phase 3 clinical trials for ulixacaltamide, a treatment for essential tremor. The trials showed that the drug met its primary and key secondary endpoints, which led to a significant increase in the company’s price target by several analyst firms. Guggenheim has raised its price target to $350, while TD Cowen increased its target to $251, both maintaining a Buy rating on the stock. Piper Sandler also reiterated an Overweight rating with a price target of $270, citing the company’s promising catalyst lineup. Additionally, Piper Sandler noted positive Phase 2 data for Praxis’s epilepsy treatment, vormatrigine, which targets focal onset seizures. These developments underscore the company’s progress in its drug pipeline and have attracted positive attention from the investment community.

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