Rapport Therapeutics stock gets Buy rating from Jefferies, driven by RAP-219 prospects By Investing.com

On Tuesday, Jefferies initiated coverage on Rapport Therapeutics (NASDAQ:RAPP) stock with a Buy rating and a price target of $35.00. The firm’s outlook is based on the potential for Rapport’s lead drug, RAP-219, to transform the treatment landscape for several central nervous system (CNS) disorders, including epilepsy, which is a market worth over $1 billion.

The analyst at Jefferies highlighted RAP-219’s unique position as a highly-selective AMPA receptor modulator. The early Phase I data suggests that the drug may offer a distinct combination of efficacy and safety. According to the analyst, this could set RAP-219 apart from existing treatments.

Looking ahead, Jefferies anticipates that the forthcoming Phase II data, expected in mid-2025, could demonstrate strong and clear results in actual epilepsy patients. Such outcomes are predicted to significantly increase the value of Rapport Therapeutics’ stock by 25-35% or possibly more. This anticipated data release is seen as a critical event that could further de-risk the RAP platform.

The firm’s positive stance on Rapport Therapeutics is rooted in the belief that the company’s RAP-219 has the potential to disrupt the current treatment paradigm for CNS disorders. The $35.00 price target reflects this optimistic view of the drug’s prospects in the market.

InvestingPro Insights

As Rapport Therapeutics (NASDAQ:RAPP) captures the attention of Jefferies with a bullish outlook, real-time data from InvestingPro sheds light on the company’s financial health and market performance. With a market capitalization of $930.51 million, Rapport Therapeutics holds more cash than debt, suggesting a solid balance sheet. This is an important consideration for investors, especially when evaluating the company’s ability to fund ongoing research and development for drugs like RAP-219.

InvestingPro data also reveals that the stock has experienced a significant return over the last week, month, and three months, with increases of 12.07%, 22.31%, and 22.31% respectively. This momentum is reflected in the stock trading near its 52-week high, with the price at 93.84% of this peak. However, it’s worth noting that the current InvestingPro Fair Value estimate stands at $14.28, which suggests potential overvaluation at the recent closing price of $25.44.

Investors considering Rapport Therapeutics should also be aware that despite the recent positive performance, the company is not profitable over the last twelve months, and it does not pay a dividend to shareholders. For those looking to delve deeper into Rapport’s financials and market potential, there are additional InvestingPro Tips available, including insights on the company’s liquidity and profitability metrics. Using the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips.

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