TAK - Ovid downgraded to sector perform at RBC as shares surge 34% on Takeda deal

RBC Capital Markets analyst Brian Abrahams has downgraded shares of Ovid Therapeutics Inc. (OVID) to sector perform from outperform but is maintaining his price target of $5.Shares of Ovid are up 34% to $3.97 in afternoon trading after the company's announcement this morning that Takeda Pharmaceutical (TAK) has signed an agreement with Ovid for the global rights from to develop and commercialize soticlestat (TAK-935/OV935).Regarding the deal, Abrahams writes, "the transaction represents a significant win, accelerating the monetization of this underappreciated asset to finally enable better reflection of its value in shares."However, due to today's substantial upside as well as fewer catalysts in the near term, he is expecting "range-bound trade" in the near term.

For further details see:

Ovid downgraded to sector perform at RBC as shares surge 34% on Takeda deal