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Citi sets $40 target on Longboard Pharmaceuticals

Published 02/16/2024, 06:10 AM
Updated 02/16/2024, 06:10 AM
© Reuters.

On Thursday, Longboard Pharmaceuticals Inc (NASDAQ:LBPH) received a Buy rating from Citi, with a set price target of $40. The coverage initiation follows a significant rally in the company's shares earlier in the year, attributed to positive clinical trial results.

The company's stock experienced a sharp increase, surging over 400% after announcing promising results from the Phase 1b/2a PACIFIC trial of bexicaserin for the treatment of rare epilepsies, specifically developmental and epileptic encephalopathies (DEE). According to the initiating analyst, bexicaserin has the potential to outperform existing treatments and could serve a broader patient base within the DEE market.

Despite a slight retreat in the stock price in late January due to Pfizer (NYSE:PFE) divesting approximately a 20% stake acquired through an earlier acquisition, analysts suggest that Longboard Pharmaceuticals might attract attention from other strategic investors considering it as an acquisition target.

Looking ahead to the second half of 2024, there is anticipation of further positive developments. Investors are keenly awaiting updates from the ongoing Open-Label Extension (OLE) study and additional details regarding the Phase 3 program, which will be shaped by feedback from the U.S. Food and Drug Administration (FDA).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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