Canaccord ups Sage target to $191 on 'unequivocally positive' data
Canaccord Genuity analyst John Newman raised his price target for Sage Therapeutics to $191 from $140 after the company reported Phase II trial results for SAGE-217 in major depressive disorder. The stock in early trading is up 66%, or $60.86, to $152.76. The data are "unequivocally positive" with a statistically significant effect versus placebo after the first dose, Newman tells investors in a research note. By comparison, currently marketed selective serotonin reuptake inhibitor depression drugs often take months to show an effect, the analyst points out. Further, he views SAGE-217's safety as "clean" and "highly encouraging." While admitting some investors may want to take profits on today's profits, Newman thinks Sage's long-range prospects are positive and he maintains a Buy rating on the shares.