CERE - Cerevel extends losses as Wells Fargo downgrades after timeline shift for trials

• Shares of Cerevel Therapeutics ( NASDAQ: CERE ) lost for the third straight session on Thursday after Wells Fargo downgraded the neuroscience-focused biotech to Equal Weight from Overweight, citing the company's decision to push back the timeline for multiple clinical programs.
• Cerevel ( CERE ) fell ~14% on Wednesday after the company updated the schedule for expected data readouts for some of its key clinical programs, including its Phase 2 trial for Darigabat in focal epilepsy.
• Due to enrollment challenges and other factors, the company no longer expects a 2023 readout for the REALIZE proof-of-concept trial.
• Arguing that the decision removes a key catalyst for the stock this year, Wells Fargo's Mohit Bansal wrote, "the stock could be rangebound," given the lack of catalysts until 2024. The analyst trimmed the CERE price target to $30 from $38 to adjust the estimated timeline for product launches in light of the latest trial updates.
• Wall Street has remained bullish on Cerevel ( CERE ) stock, with an average rating of Buy from analysts since June . Meanwhile, Seeking Alpha's Quant System, which consistently beats the market, indicated a Hold rating on CERE since October.

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