Possible gap fill above $54 with $62 as a upside target
Imitated afterhours by Citi to buy
Average analysts price target $95.42 | Overweight
Short interest high at 13.09%
Stifel analyst Paul Matteis says Sage Therapeutics shares below $50 represent one of the best opportunities in Stifel's coverage universe. The bear case is the uncertain path forward for SAGE-217 and Zulresso looking commercially unviable while Sage's cash burn profile seeming "misaligned" with the post-MOUNTAIN trial market capitalization, Matteis tells investors in a research note. However, the analyst, who doesn't even completely disagree with the bear case, believes the stock "seems to heavily discount two major upside levers." SAGE-217 is a single positive acute major depressive disorder study away from being just as big of a drug as investors have always hoped, and SAGE-217's value in postpartum depression is underappreciated, even if another study is needed, contends the analyst. Matteis keeps a Buy rating on Sage Therapeutics with a $143 price target. The stock closed Friday down 10%, or $5.01, to $47.00.
Imitated afterhours by Citi to buy
Average analysts price target $95.42 | Overweight
Short interest high at 13.09%
Stifel analyst Paul Matteis says Sage Therapeutics shares below $50 represent one of the best opportunities in Stifel's coverage universe. The bear case is the uncertain path forward for SAGE-217 and Zulresso looking commercially unviable while Sage's cash burn profile seeming "misaligned" with the post-MOUNTAIN trial market capitalization, Matteis tells investors in a research note. However, the analyst, who doesn't even completely disagree with the bear case, believes the stock "seems to heavily discount two major upside levers." SAGE-217 is a single positive acute major depressive disorder study away from being just as big of a drug as investors have always hoped, and SAGE-217's value in postpartum depression is underappreciated, even if another study is needed, contends the analyst. Matteis keeps a Buy rating on Sage Therapeutics with a $143 price target. The stock closed Friday down 10%, or $5.01, to $47.00.
