Cerevel initiated with Overweight on blockbuster potential at Piper

Piper Sandler last night initiated coverage of Cerevel Therapeutics (CERE) with an Overweight rating and $33 price target. The analyst believes the debate regarding the relative merits of Cerevel’s emraclidine and Karuna’s (KRTX) KarXT obscures the larger point that the selective muscarinic agonist category is “likely to herald a transformation” in the management of schizophrenia, in the context of the well-documented limitations of atypical antipsychotics. The firm says both agents can readily co-exist, “carving out blockbuster footprints.”