Market reaction and valuation
Piper Sandler has raised its price target on Praxis Precision Medicines Inc. (NASDAQ: PRAX) from $450.00 to $1,200.00 and kept an Overweight recommendation on the stock. Praxis shares are currently trading at $313.25, reflecting a market capitalization near $8.8 billion.
Recent share performance
The stock has delivered exceptional returns over the past year, gaining roughly 330% compared with a near 40% rise in the XBI biotech index across the same period. InvestingPro data highlights a 317.66% price return over the last 12 months and a 465.59% increase over the past six months. Despite these gains, InvestingPro’s Fair Value assessment indicates the shares may be overvalued relative to its metrics.
Analyst rationale and model updates
Piper Sandler attributes much of Praxis’ recent stock strength to clinical progress with ulixacaltamide in essential tremor (ET) and relutrigine in developmental and epileptic encephalopathies (DEEs). Management expects to file New Drug Applications for both programs by mid-February 2026. In updating its financial model, the research firm now incorporates four assets - ulixacaltamide, relutrigine, vormatrigine, and elsunersen - and projects peak U.S. sales of $23 billion across these products by 2046.
Piper Sandler’s forecast envisions Praxis generating more than $20 billion in revenue despite an assumed peak market share below 5%. The firm characterizes 2026 as a year dense with data and regulatory catalysts for the company.
Regulatory and program milestones
Praxis has publicly outlined plans to submit two NDAs to the U.S. Food and Drug Administration for ulixacaltamide and relutrigine by mid-February 2026. Both programs have received Breakthrough Therapy Designation. The company also expects key readouts in 2026, including results from the POWER1 study of vormatrigine for focal onset seizures.
Capital raising and corporate governance moves
Praxis priced a public offering at $260 per share to raise approximately $575 million in gross proceeds. In parallel with financing activity, the company made several board and management adjustments: Jeffrey B. Kindler and Stuart Arbuckle were added to the board of directors; Megan Sniecinski was promoted to Chief Operating Officer; and Dr. Steven Petrou was named President of Research & Development. The company also appointed Dr. Orrin Devinsky as Head of Clinical Strategy.
Implications for investors
Piper Sandler reiterated its Overweight rating and signaled confidence in the potential approvals and commercial prospects reflected in its updated long-range sales estimates. The combination of regulatory filings, clinical milestones, and fresh capital are positioned to support Praxis’ development and potential future launches, according to the firm’s analysis.
What remains uncertain
While the updated price target and model are predicated on projected sales and regulatory progress, valuation metrics from InvestingPro suggest the stock may currently trade above fair value. Investors will also be watching the FDA review timelines for the two planned NDAs and the outcome of upcoming clinical readouts slated for 2026.
Key developments summarized
- Piper Sandler raises PRAX price target to $1,200 and maintains Overweight.
- Analyst model now includes ulixacaltamide, relutrigine, vormatrigine, and elsunersen with $23 billion projected peak U.S. sales by 2046.
- Praxis plans NDA submissions for ulixacaltamide and relutrigine by mid-February 2026 and has completed a $260-per-share public offering targeting approximately $575 million in gross proceeds.