CERE - Cerevel overweight at Wells Fargo due to candidates with blockbuster potential
- Wells Fargo has initiated Cerevel Theraspeutics Holdings ( NASDAQ: CERE ) with an overweight rating on the potential of its neuroscience pipeline.
- The firm has a $38 price target (~45% upside based on Friday's close).
- Analyst Mohit Bansal said while much of the focus on the company has been on emraclidine for schizophrenia -- which he said could have sales of at least $2B -- other pipeline assets have promise.
- He cited darigabat, currently in phase 2 for epilepsy, as potentially accounting for up to $6/share in upside. The asset is also in phase 1 for anxiety.
- Bansal is less optimistic on tavapadon, currently in phase 3 for Parkinson's disease, but added there may be potential for it in early Parkinson's.
- He noted that given a recent surge in M&A activity, its partnership with Pfizer ( PFE ), and the promise of emraclidine also make Cerevel ( CERE ) a potential M&A target. Cerevel was spun off from Pfizer ( PFE ) in 2018.
- Seeking Alpha's Quant Rating views Cerevel ( CERE ) as a strong sell.
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Cerevel overweight at Wells Fargo due to candidates with blockbuster potential