Deutsche Bank Starts Praxis Precision Medicines Inc. (PRAX) at Buy

Deutsche Bank analyst David Hoang initiates coverage on Praxis Precision Medicines Inc. (NASDAQ: PRAX) with a Buy rating and a price target of $111.00.

The analyst comments: "PRAX has been one of the most volatile small/mid-cap biotech stocks in recent years. Two major setbacks were failure of the Ph2/3 study of PRAX-114 in MDD (Jun. 2022) and miss on the primary endpoint of the Ph2b study of ulixacaltamide in ET (Mar. 2023). Yet over the past 12 months, investors have become more constructive on the name, with shares appreciating 100%+ ahead of a catalyst-rich 2025. We expect to see significant volatility in 1H25 around the Ph3 ESSENTIAL3 readout for ulixacaltamide, which consists of Study 1 (parallel design) and Study 2 (randomized withdrawal). In our view, the upcoming ulixacaltamide data in 1H25 carries inherent risk, but success could significantly de-risk the investment case and create a more compelling rationale for investment. More risk-averse investors might be more comfortable stepping in post-ET readout to play for subsequent data for vormatrigine in 2H25 and relutrigine in 1H26. Initiate Buy, PT USD111."

For an analyst ratings summary and ratings history on Praxis Precision Medicines Inc. click here. For more ratings news on Praxis Precision Medicines Inc. click here.

Shares of Praxis Precision Medicines Inc. closed at $84.85 yesterday.

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