Truist Financial analyst Joon Lee maintained a Buy rating on Praxis Precision Medicines (PRAX – Research Report) today and set a price target of $85.00.
Joon Lee’s rating is based on several strategic factors that highlight the potential of Praxis Precision Medicines. Despite the setback in the Essential3 Study 1, which was recommended to be stopped due to futility, Lee maintains a Buy rating due to the promising outlook of other key projects. The focus remains on the development of vormatrigine for Focal Onset Seizures (FOS) and relutrigine for Developmental and Epileptic Encephalopathies (DEE), which are on track to deliver significant data in 2025.
Lee also notes that the company’s financial position is strong, with $469.5 million in cash and equivalents, providing a financial runway until 2028. This financial stability supports ongoing and future trials, including the RADIANT OL study and the POWER1 and POWER2 trials. The potential upside from the Essential3 Study 2, which has a higher probability of success, further justifies the Buy rating, as it could contribute positively to the company’s valuation in the future.
According to TipRanks, Lee is a 5-star analyst with an average return of 23.8% and a 50.14% success rate. Lee covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Vertex Pharmaceuticals, and Verona Pharma.