RBC Capital Raises Acadia Pharmaceuticals PT to $40, Maintains Outperform Rating

RBC Capital Raises Acadia Pharmaceuticals PT to $40, Maintains Outperform Rating

RBC Capital Markets has significantly raised its price target for Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) to $40 from $38, while maintaining an Outperform rating. The upgrade follows the company's strong second-quarter earnings report and positive market developments.

Acadia Pharmaceuticals reported second-quarter revenue of $264.6 million, a 9% increase from the same period last year, exceeding FactSet estimates of $262.0 million. The company's earnings per share (EPS) of $0.16 also surpassed Wall Street expectations of $0.14, representing a 14.29% surprise. Revenue growth was primarily driven by the performance of Acadia’s DAYBUE medication, while sales for its NUPLAZID product were in line with expectations [1].

The company's strong financial health is reflected in its "GREAT" rating on InvestingPro, supported by 14.4% revenue growth and a solid balance sheet showing more cash than debt. Additionally, management has raised the low end of its 2025 U.S. total revenue guidance by $15 million to a new range of $1,045-1,095 million, with the midpoint target of $1,070 million appearing achievable based on current performance [1].

Acadia Pharmaceuticals continues to make progress with its Nuplazid direct-to-consumer campaign and has expanded its Daybue sales force, with initial metrics indicating continued growth for both products. Despite the price target increase, RBC maintained its Outperform rating, citing a balanced risk/reward profile at current levels, while noting the upcoming Phase 3 COMPASS PWS trial readout for ACP-101 in Prader-Willi Syndrome represents additional potential upside not currently factored into their model [1].

In other recent news, Acadia Pharmaceuticals was added to the Russell 2000 Growth-Defensive Index and the Russell 2000 Defensive Index, reflecting its strong performance and market potential [2].

References:
[1] https://ca.investing.com/news/analyst-ratings/mizuho-raises-acadia-pharmaceuticals-stock-price-target-on-solid-earnings-93CH-4143266
[2] https://www.marketscreener.com/news/acadia-pharma-s-q2-revenue-up-9-ce7c5ededa8df424