Citizens JMP cuts Acadia stock target to $37, keeps rating

Published 27/02/2025, 10:52
Citizens JMP cuts Acadia stock target to $37, keeps rating

On Wednesday, Citizens JMP adjusted its price target on Acadia Pharmaceuticals (NASDAQ:ACAD) shares, bringing it down to $37.00 from the previous $39.00, while still retaining a Market Outperform rating. The revision follows the release of Acadia’s fourth-quarter financial results for the year 2024, which were in line with both Citizens JMP’s and the consensus estimates. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.64, with impressive revenue growth of 47% in the last twelve months.

Acadia Pharmaceuticals disclosed its financial performance for the fourth quarter of 2024 and also provided guidance for the year 2025. The company’s results showed DAYBUE’s stabilization and projected robust growth in the second half of 2025. NUPLAZID, another product by Acadia, continued to display strong performance, with expectations for meaningful growth over the upcoming years. InvestingPro data reveals two key insights: the company holds more cash than debt on its balance sheet, and net income is expected to grow this year. InvestingPro subscribers have access to 6 additional exclusive tips for ACAD.

Citizens JMP’s analysts highlighted the potential in Acadia’s commercial franchises and noted multiple opportunities within the company’s pipeline programs that could drive long-term value. They also pointed out that Acadia’s strong cash flow position allows for internal investments and the potential acquisition of additional assets. This is supported by the company’s healthy current ratio of 2.29 and strong levered free cash flow of $202.66 million in the last twelve months.

The reduction in the price target is attributed to revised projections for DAYBUE in 2025 and moderated growth expectations for the mid-term. Despite the adjustment, Citizens JMP has kept its peak sales projection for DAYBUE at greater than $700 million.

Acadia Pharmaceuticals’ financial results and future prospects, including the anticipated growth of NUPLAZID and the potential of pipeline programs, were key points in the report provided by Citizens JMP. The firm’s maintained Market Outperform rating indicates their continued confidence in the company’s performance despite the slight adjustment in the price target.

In other recent news, Acadia Pharmaceuticals reported a 12% increase in revenue for the fourth quarter of 2024, totaling $259.6 million. The company’s full-year revenue for 2024 reached $957.8 million, marking a 32% increase from the previous year, driven by strong sales of its products DAYBÜ and NUPLAZID. Acadia has projected its 2025 revenue to be between $1.03 billion and $1.095 billion. In addition, DAYBÜ sales surged by 97% in 2024, contributing significantly to the company’s growth. Looking ahead, Acadia plans to expand its sales force and enter international markets, including Europe and Canada. The company is also preparing for new market entries and has announced strategic expansions to support its growth trajectory. Furthermore, Acadia is enhancing its commercial leadership, with Tom Garner joining as the new Chief Commercial Officer to drive momentum and deliver sustained growth.

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

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