Karuna Therapeutics price target raised to $115 from $28 at Citi
Citi analyst Mohit Bansal said the phase 2 data reported by Karuna Therapeutics for KarXT appear better than expected, better than current anti-psychotics, and could be "paradigm changing." The drug's "benign" safety lead him to see the potential for use as a front line agent as well, leading the analyst to raise his peak unadjusted sales estimate in schizophrenia to $4.7B from $2.3B. Given the higher peak sales potential, and higher odds assigned for the drug's approval, Bansal raised his price target for Karuna shares to $115 from $28. The analyst, who thinks there is more upside in the stock despite today's move, keeps a Buy rating on Karuna shares, which are up $64.52, or 365%, to $82.20.