On Tuesday, a Jefferies analyst updated the firm's outlook on Praxis Precision Medicines Inc. (NASDAQ:PRAX), increasing the price target to $141 from $128. The analyst reiterated a Buy rating on the stock, signaling continued confidence in the company's prospects.
The revision in the price target reflects anticipation of significant developments in the company's pipeline, particularly beyond the key Phase 3 ulixa readout expected in the second half of 2024. The analyst pointed to PRAX-562 as a noteworthy upcoming event, with the Phase 2 EMBOLD study in developmental and epileptic encephalopathies (DEEs) having completed randomization. Results from this study are projected to be released in the third quarter of 2024.
The analyst expressed optimism about the potential outcomes of the EMBOLD study, suggesting that a median seizure reduction of approximately 30% would be viewed positively, while a reduction greater than 40% would be considered particularly compelling for patients with SCN2A and SCN8A gain of function (GoF) DEEs.
Inclusion of PRAX-562 in the Jefferies model is cited as the primary driver for the increased price target. The update to the financial model underscores the firm's expectation that PRAX-562 will contribute to the company's value.
Praxis Precision Medicines specializes in developing therapies for neurological disorders, and the attention from analysts highlights the significance of their clinical trials in the field. The updated price target from Jefferies provides investors with a revised expectation for the company's stock performance based on the latest developments and anticipated trial results.
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