Canaccord predicts 50% surge for undervalued biotech stock

Welcome to Extreme Investor Network, where we provide you with the latest and most valuable insights in the world of investing. Today, we are excited to discuss the positive data from Intra-Cellular Therapies’ latest study and what it could mean for investors.

Canaccord Genuity, a leading financial firm, recently reiterated its buy rating on the biotechnology stock and raised its price target to $113 from $107. This updated forecast suggests that shares of Intra-Cellular Therapies could potentially surge by nearly 50% from their current price. Analyst Sumant Kulkarni highlighted the company’s announcement of positive Phase 3 data from Study 502 for lumateperone, a treatment for major depressive disorder (MDD), as a key catalyst for projected growth.

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Kulkarni emphasized the significance of the solid Phase 3 data, stating that an approval for lumateperone in MDD is more of a when, not if. Despite a modest 4% increase in share price this year, Kulkarni believes that the stock has been undervalued due to concerns about its patent runway. However, he remains optimistic about the company’s prospects, especially in the MDD market.

Looking ahead, Kulkarni pointed out that Intra-Cellular Therapies is well-capitalized and positioned to succeed in the competitive MDD market. With the potential for future success, investors may want to keep a close eye on this biopharma name.

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