Wedbush analyst Liana Moussatos started coverage of Karuna Therapeutics with an Outperform rating and a $38 price target. The analyst considers Karuna Therapeutics to be an opportunity to invest in a breakthrough oral treatment for symptoms and cognitive impairment associated with schizophrenia and Alzheimer's disease as well as pain. Due to millions of schizophrenia and Alzheimer's disease patients and low compliance for current "dirty" drugs available for psychosis and nothing approved for negative symptoms or cognitive impairment, Moussatos sees blockbuster sales potential for KarXT. Starting with U.S. launch in 2023, she estimates KarXT could achieve over $1B in gross peak annual sales in 2027 and more than $4B in 2030.