H.C. Wainwright analyst Douglas Tsao initiated coverage of Sage Therapeutics with a Neutral rating and $160 price target. The analyst says that while Sage shares have pulled back from earlier highs, the risk/reward is still not favorable into the readout of SAGE-217's Mountain trial for major depressive disorder. He's confident SAGE-217 comes to market, but thinks the sedation and somnolence caused by the drug could have negative commercial implications. In the near term, Tsao sees only 10% upside from successful Mountain readout, "though downside could be as great as 20-30% without strong results."