Analyst Ratings January 23, 2026

Piper Sandler Maintains Optimistic Outlook on Praxis Precision Medicines with Substantial Price Target

Confidence Grows as Praxis Advances Toward FDA NDA Submissions for Novel Neurological Therapies

By Jordan Park PRAX
Piper Sandler Maintains Optimistic Outlook on Praxis Precision Medicines with Substantial Price Target
PRAX

Piper Sandler has reaffirmed its Overweight rating and set a $450 price target for Praxis Precision Medicines, citing promising developments in the company's pipeline for essential tremor and developmental epileptic encephalopathies. Despite recent stock surges pushing valuations near their peak, analyst confidence remains strong due to upcoming New Drug Applications and robust market potential.

Key Points

  • Piper Sandler maintains Overweight rating on Praxis Precision Medicines with a $450 price target, forecasting nearly 48% upside potential.
  • Positive regulatory milestones are anticipated with NDA submissions for ulixacaltamide for essential tremor and relutrigine for developmental and epileptic encephalopathy by mid-February 2026.
  • Praxis plans a substantial commercial launch with a focus on neurologists and estimates annual pricing for ulixacaltamide between $50,000 and $75,000, targeting a market valued at over $10 billion.

Piper Sandler has sustained its positive stance on Praxis Precision Medicines Inc. (NASDAQ: PRAX) following a detailed investor dinner with the company’s leadership team. The firm reiterated its Overweight rating accompanied by a price target of $450 per share, which implies an approximate 48% increase from the stock’s recent trading level near $304.38.

However, market data from InvestingPro shows that Praxis stock has experienced an impressive rise of 292% over the previous year, placing it above its Fair Value benchmarks. Piper Sandler’s endorsement hinges on the anticipated regulatory milestone events for two key pipeline candidates: ulixacaltamide, intended to treat essential tremor (ET), and relutrigine, targeting SCN2A/SCN8A developmental and epileptic encephalopathy (DEE). Both therapies are expected to have their New Drug Application (NDA) filings submitted by mid-February 2026.

The research group emphasized the significant market opportunity for ulixacaltamide, estimating its potential to surpass a $10 billion valuation. This figure is underpinned by the currently unmet clinical demand, evidenced by about half of patients currently discontinuing treatment subsequently seeking to resume therapy. The management team detailed their preparations for commercialization, revealing plans to establish a sales force approximately 300 strong, aimed at engaging around 13,000 neurologists nationwide. These physicians typically manage caseloads of 50 to 100 essential tremor patients, indicating accessible markets.

Praxis projects annual drug pricing for ulixacaltamide in the range of $50,000 to $75,000. Piper Sandler interprets this pricing strategy as capable of enabling "multi-blockbuster success," contingent on regulatory approval. The firm holds a market capitalization near $8.44 billion, with analyst price targets displaying wide variance from $95 to $843, reflective of ongoing volatility. Currently, Praxis trades close to its 52-week high of $326.91.

Complementing these developments, Praxis Precision Medicines reported a preliminary and unaudited cash and cash equivalent balance of approximately $925 million as of December 31, 2025. The company also disclosed its intention to file NDAs for both ulixacaltamide and relutrigine by mid-February 2026, noting that each candidate has secured Breakthrough Therapy Designation from regulatory authorities.

Additionally, Praxis has initiated a public offering priced at $260 per share, seeking to raise gross proceeds around $575 million. Leadership enhancements include the appointment of Dr. Orrin Devinsky as Head of Clinical Strategy to oversee clinical and global medical affairs. The board of directors welcomed new members Jeffrey B. Kindler and Stuart Arbuckle, while internal promotions elevated Megan Sniecinski to Chief Operating Officer and Dr. Steven Petrou to President of Research & Development. These strategic leadership shifts are designed to support late-stage clinical development and prepare for upcoming commercial launches.

These cumulative efforts highlight Praxis’s active pipeline advancement and organizational strengthening as it positions itself in the competitive neurological therapeutics market.

Risks

  • Praxis’s stock has appreciated significantly, trading above its Fair Value following a 292% increase in the past year, indicating price volatility and potential valuation risks.
  • The NDA submissions scheduled for mid-February 2026 create regulatory approval uncertainty that could impact pipeline success and company valuation.
  • Investments in salesforce expansion and commercial infrastructure pose execution risks in reaching targeted neurologists and capturing market share.

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