UPDATE: Citi Starts Pear Therapeutics (PEAR) at Buy

Citi analyst Neena Bitritto-Garg initiates coverage on Pear Therapeutics (NASDAQ: PEAR) with a Buy rating and a price target of $13.00.

The analyst comments "As growth in the digital health space accelerates, partly given the pandemic’s impact on mental health, Pear is well positioned to leverage a first-mover advantage in prescription digital therapeutics (PDTs). PDTs are software solutions (apps) that, like prescription drugs, treat disease (often through delivery of cognitive behavioral therapy) and 1) have been studied in clinical trials, 2) have regulatory authorization, 3) are available by prescription only, and 4) may be reimbursed. Because reimbursement is the gating factor to commercial success of Pear’s PDTs and payer adoption has been slow but steady to date, a reimbursement overhang could pressure the shares into 2022. However, we think a reimbursement inflection point is approaching and see a path for Pear to rapidly scale with commercial and pipeline products once streamlined regulatory/access frameworks for PDTs are in place in 2022/2023. As such, we initiate coverage with a Buy/High Risk rating and $13 price target."

For an analyst ratings summary and ratings history on Pear Therapeutics click here. For more ratings news on Pear Therapeutics click here.

Shares of Pear Therapeutics closed at $5.27 yesterday.

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