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RBC upgrades Sage to Sector Perform with negative thesis played out
The Fly

RBC upgrades Sage to Sector Perform with negative thesis played out

RBC Capital upgraded Sage Therapeutics (SAGE) to Sector Perform from Underperform with an unchanged price target of $4. The firm says that this morning’s announced failure of dalzamendor in Huntington’s disease and discontinuation of the program, its thesis on potential stock downside into and through the data readout has played out. The end of the road for dalzamendor means Sage will now have to work through a strategic reset while launching Zurzuvae, the analyst tells investors in a research note. As the company sorts out next steps for its share of Zurzuvae and earlier stage pipeline, RBC expects the shares to trade more in line.

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