RBC puts Street-high price target of $280 on Sage Therapeutics
RBC Capital analyst Brian Abrahams raised his price target for Sage Therapeutics to $280 from $137 after the company reported Phase II trial results for SAGE-217 in major depressive disorder. The target represents the high among Wall Street sell-side analysts, according to Bloomberg. The "outstanding" data show a "differentiated profile that could be game-changing" if replicated in Phase III, and may lead to $3.8B in out-year sales, Abrahams tells investors in a research note. The analyst still sees "considerable fundamental upside" in shares despite today's rally. He also sees a "good likelihood" of takeout at a valuation premium to current levels. Abrahams keeps an Outperform rating on Sage Therapeutics. The stock in midday trading is up 78%, or $72.10, to $164.00.