HC Wainwright Issues Pessimistic Outlook for PRAX Earnings

Key Points

• HC Wainwright cut its FY2028 EPS estimate for Praxis Precision Medicines to $29.24 from $31.73, but kept a Buy rating and a very high $1,201 price target on the stock.
• Praxis recently reported a quarterly loss of ($3.20) per share, which beat Wall Street’s estimate of ($3.58), showing better-than-expected near-term earnings performance.
• Investor sentiment remains mixed: while several analysts still have bullish ratings, the company’s vormatrigine seizure program was paused after a Phase 2/3 study missed its primary endpoint, raising pipeline concerns.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX - Free Report) - Equities research analysts at HC Wainwright decreased their FY2028 EPS estimates for Praxis Precision Medicines in a research note issued on Tuesday, June 2nd. HC Wainwright analyst D. Tsao now anticipates that the company will post earnings of $29.24 per share for the year, down from their previous forecast of $31.73. HC Wainwright has a "Buy" rating and a $1,201.00 price objective on the stock. The consensus estimate for Praxis Precision Medicines' current full-year earnings is ($14.79) per share. HC Wainwright also issued estimates for Praxis Precision Medicines' FY2029 earnings at $82.12 EPS.

Praxis Precision Medicines (NASDAQ:PRAX - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($3.20) earnings per share for the quarter, beating the consensus estimate of ($3.58) by $0.38.

Several other equities analysts also recently commented on the stock. Oppenheimer reissued an "outperform" rating and issued a $650.00 target price (down from $750.00) on shares of Praxis Precision Medicines in a report on Tuesday. Robert W. Baird lowered their target price on shares of Praxis Precision Medicines from $433.00 to $400.00 and set an "outperform" rating on the stock in a report on Tuesday. TD Cowen reissued a "buy" rating on shares of Praxis Precision Medicines in a report on Tuesday. Weiss Ratings reissued a "sell (d-)" rating on shares of Praxis Precision Medicines in a report on Wednesday, May 27th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $510.00 target price on shares of Praxis Precision Medicines in a report on Tuesday, April 14th. Four investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $572.72.

Praxis Precision Medicines Stock Performance

PRAX stock opened at $278.93 on Thursday. Praxis Precision Medicines has a one year low of $37.19 and a one year high of $366.52. The company's fifty day moving average price is $326.12 and its 200-day moving average price is $297.85. The company has a market capitalization of $7.78 billion, a PE ratio of -20.86 and a beta of 2.71.

Institutional Investors Weigh In On Praxis Precision Medicines

Several large investors have recently bought and sold shares of the business. Janus Henderson Group PLC increased its position in Praxis Precision Medicines by 6.8% in the first quarter. Janus Henderson Group PLC now owns 3,458,863 shares of the company's stock worth $1,113,514,000 after purchasing an additional 218,777 shares during the last quarter. Perceptive Advisors LLC increased its position in Praxis Precision Medicines by 2.0% in the first quarter. Perceptive Advisors LLC now owns 2,035,986 shares of the company's stock worth $655,974,000 after purchasing an additional 40,000 shares during the last quarter. Adage Capital Partners GP L.L.C. increased its position in Praxis Precision Medicines by 13.3% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,974,585 shares of the company's stock worth $83,031,000 after purchasing an additional 231,827 shares during the last quarter. Vanguard Group Inc. increased its position in Praxis Precision Medicines by 15.3% during the fourth quarter. Vanguard Group Inc. now owns 1,460,933 shares of the company's stock valued at $430,595,000 after acquiring an additional 193,647 shares during the last quarter. Finally, Orbis Allan Gray Ltd bought a new position in Praxis Precision Medicines during the fourth quarter valued at $369,946,000. Institutional investors own 67.84% of the company's stock.

Key Stories Impacting Praxis Precision Medicines

Here are the key news stories impacting Praxis Precision Medicines this week:

• Positive Sentiment: HC Wainwright reiterated a Buy rating on Praxis Precision Medicines and only slightly lowered its FY2030 EPS estimate and price target, signaling continued long-term optimism despite near-term volatility. HC Wainwright estimate cut and price target on PRAX
• Positive Sentiment: Several analysts still see substantial upside, with recent reports from Robert W. Baird and HC Wainwright maintaining constructive views on the stock. Analyst updates on PRAX
• Neutral Sentiment: Praxis announced small inducement stock grants to attract new employees, a routine corporate action with limited immediate impact on the share price. Inducement grants announcement
• Negative Sentiment: Praxis paused one of its seizure programs after its Phase 2/3 POWER1 study of vormatrigine missed the primary endpoint, raising concerns about the company’s epilepsy pipeline and execution risk. Vormatrigine trial setback
• Negative Sentiment: The trial failure triggered sharp negative press coverage and an after-hours selloff, suggesting investors are reassessing the value of the company’s seizure franchise. MarketWatch report on PRAX trial failure

Praxis Precision Medicines Company Profile

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing precision therapies for disorders driven by neuronal excitability. The company applies translational neuroscience and genetic insights to design small molecule drugs that target specific ion channels and receptor subtypes implicated in neurological and psychiatric conditions. Its research aims to address unmet needs in rare epilepsies, essential tremor, treatment-resistant depression and other central nervous system (CNS) disorders.

The company's pipeline includes several lead candidates at various stages of development.

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