Lucid Capital Markets initiates Ovid Therapeutics stock with Buy rating

Published 13/08/2025, 11:56
Lucid Capital Markets initiates Ovid Therapeutics stock with Buy rating

Investing.com - Lucid Capital Markets initiated coverage on Ovid Therapeutics Inc (NASDAQ:OVID) with a Buy rating and a $5.50 price target on Wednesday. The target represents significant upside potential for the $38.9 million market cap company, which has shown strong momentum with a 7.21% gain over the past week. According to InvestingPro data, analyst targets currently range from $1.50 to $4.00.

The research firm identified Ovid’s focus on developing drugs to treat epilepsies and seizure-related neurological disorders as the foundation for its positive outlook.

Lucid Capital Markets highlighted Ovid’s development of KCC2 activators, describing KCC2 as a "master regulator of the brain’s inhibitory balance" that serves as the critical chloride pump allowing neurons to control excessive electrical activity.

The firm noted that when KCC2 function is impaired, the brain’s ability to control excitation collapses, which can lead to various conditions including epilepsy, neuropathic pain, and neurodegenerative and psychiatric disorders.

Lucid Capital Markets emphasized that targeting KCC2 addresses a fundamental mechanism underlying multiple diseases, potentially creating a pathway for transformative, first-in-class therapies with broad clinical and market potential.

In other recent news, Ovid Therapeutics has reported several key developments. The company sold its future royalty rights related to ganaxolone sales outside China to Immedica Pharma AB for $7 million in cash. This non-dilutive funding will support Ovid’s ongoing operations, with the company having recorded approximately $566,000 in ganaxolone royalty revenues in 2024. In terms of stock analysis, B.Riley has assumed coverage of Ovid Therapeutics with a Buy rating and a $3.00 price target. Meanwhile, H.C. Wainwright adjusted its price target for Ovid to $1.50, down from $2.00, but maintained a Buy rating. Ovid is actively involved in clinical developments, particularly with OV329, a next-generation GABA-AT inhibitor. The company is conducting a Phase 1 study on OV329, with results anticipated in the third quarter of 2025. This study aims to evaluate various factors, including pharmacodynamics, target engagement, pharmacokinetics, safety, and tolerability.

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