Baird has reaffirmed its positive stance on Longboard Pharmaceuticals Inc (NASDAQ: LBPH), maintaining an Outperform rating and a $60.00 price target for the company's stock.
The endorsement follows a recent investor and analyst event where Longboard detailed its phase 3 plans for its drug candidate, bexicaserin, which is being developed to treat Developmental and Epileptic Encephalopathies (DEEs).
The event revealed that the phase 3 clinical trial for bexicaserin is slated to begin around the end of September, with expectations set for top-line results by the end of 2026. Baird's analysis suggests that the event aligned with what investors anticipated and did not present significant surprises.
The firm's confidence in the stock's potential growth is rooted in the belief that bexicaserin has a high likelihood of success in the upcoming phase 3 trials. This optimism is further bolstered by the projection that, should the drug reach the market, its sales could surpass $1 billion per year.
Longboard Pharmaceuticals' focus on DEEs, a group of rare and severe brain disorders, represents a critical area of unmet medical need. The successful development of bexicaserin could offer significant benefits to patients suffering from these conditions.
In other recent news, Longboard Pharmaceuticals has been the focus of several analysts. Truist Securities initiated coverage on Longboard with a Buy rating, setting a price target of $60.
The firm's analysis suggests that Longboard's lead drug, bexicaserin, could outperform the current market leader in epilepsy treatment. Baird also reaffirmed its Outperform rating on Longboard stock following positive nine-month open-label extension data on bexicaserin.
Additionally, Baird has maintained its Outperform rating ahead of an upcoming investor event, expressing confidence in Longboard's potential.
Bexicaserin's Breakthrough Therapy designation from the FDA prompted Baird to raise its price target for Longboard from $36 to $60. Furthermore, Citi increased its price target from $40 to $45, maintaining a Buy rating, following the FDA's approval of a Phase 3 study for bexicaserin.
InvestingPro Insights
According to InvestingPro, Longboard Pharmaceuticals Inc (NASDAQ:LBPH) holds a market capitalization of $1.2 billion and has seen a strong return over the last year, with a year-to-date price total return of 469.15%. This impressive performance is coupled with a significant price increase over the last six months, amounting to a 77.64% return. Despite these robust returns, the company's financial health shows some concerns, with a negative P/E ratio of -14.62, indicating that investors are paying for a loss-making entity as of the last twelve months up to Q2 2024.
InvestingPro Tips suggest that while Longboard Pharmaceuticals has more cash than debt on its balance sheet, which is a positive sign for financial stability, analysts have revised their earnings downwards for the upcoming period. Additionally, the company does not pay a dividend, which might be a consideration for income-focused investors. For those interested in delving deeper into the financial metrics and future prospects of Longboard Pharmaceuticals, there are additional InvestingPro Tips available at https://www.investing.com/pro/LBPH.
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