Updated Aug 7 at 4:02pm ET.
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RBC Capital set a $37 price target for the stock, which is about 28 percent higher than where it trades now. This move comes after the company reported sales growth for its two main drugs and raised its full-year revenue outlook.
While the average analyst target is lower at $31, this higher target suggests confidence that the company's newer drug for Rett syndrome is gaining more traction than previously expected.
Source: RBC Capital
Oppenheimer set a $25 price target, which is lower than the current stock price of about $29. This suggests the firm is more cautious than its peers about the company's valuation, even after a strong earnings report.
Source: Oppenheimer
The company reported second-quarter revenue of $310 million, topping the $300 million analysts expected. This growth was led by Daybue, a treatment for Rett syndrome, which saw sales jump 30 percent over last year to reach $125 million. Profits also came in much higher than expected, with earnings of $0.18 per share compared to the $0.07 estimate.
Management raised its full-year revenue guidance to a range of $1.24 billion to $1.30 billion. This is a key signal for long-term owners because it shows the newer Daybue franchise is scaling quickly while the older Parkinson's drug, Nuplazid, remains a steady source of cash. The company also noted that important trial data for a potential Alzheimer's psychosis treatment is expected by October, which could be the next major milestone for the business.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Raymond James set a $14.50 price target, which is roughly half of the stock's current price. This is a very cautious outlier compared to the average analyst target of $31.
When one firm's target is this much lower than others, it usually reflects a concern that the company's main drugs might face more competition or slower growth than the rest of the market expects.
Source: Raymond James
BMO Capital raised its price target from $34 to $36 while keeping its outperform rating. This suggests the firm sees about 25 percent upside from current levels, likely based on the steady sales of the company's core neurological drugs.
Source: BMO Capital
Analysts issued a flurry of positive updates following the company's strong second-quarter earnings report on August 5. Most analysts, 26 out of 37, rate the stock a buy with an average target price of $31, suggesting 7% upside.
The company has a very reliable habit of beating expectations, clearing the bar in seven of the last eight quarters. This suggests management is conservative with its forecasts and the business is performing better than analysts realize.
| Expectation | |
|---|---|
| EPS | $0.15 |
| Revenue | $331M |
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