champc/iStock via Getty Images Sage Therapeutics ( NASDAQ: SAGE ) initiated at Sell/High Risk by Citi as it believes the company will face outsized commercial, clinical, and regulatory risks over the next 12 months. The stock is down 2.6% premarket.
Citi set price target for Sage at $8, saying, “With upcoming binary catalysts and a commercial launch that could disappoint, we see further downside ahead, given high cash burn that may lead to the stock being valued up to 50% below cash. We value SAGE using a risk-adjusted DCF.” Baird, on the other hand, initiated the company at Neutral with a $15 Price Target.
The brokerage projects that after the launch of Zurzuvae for the treatment of postpartum depression in December, sales will slowly but steadily grow to $262M in 2029 (to be split 50/50 between SAGE and partner BIIB). “We attribute a 20% probability of success to SAGE-324 in essential tremor; its outlook could be impacted by topline phase 2b results from competitor JAZZ's suvecaltamide in June.” Baird said in a statement.
According to SA quant ratings, Sage Therapeutics has a Hold rating. SAGE has lost about 44.9% YTD and about 76% in the last 12 months.
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