Praxis Precision Medicines Inc. saw its stock drop 5.09% as it crossed below the 5-day SMA amid a public offering announcement.
The company has priced its public offering of 2.21 million shares at $260 each, expecting gross proceeds of approximately $575 million to fund its CNS disorder therapies development. This offering is managed by a strong lineup of underwriters, reflecting market confidence. However, the market reacted cautiously, with the stock closing lower, indicating potential investor concerns about the company's future growth prospects.
The successful capital raise is crucial for Praxis as it aims to enhance its R&D capabilities and market competitiveness in the biopharmaceutical industry. The new funding will support ongoing clinical development efforts, but the immediate market reaction suggests that investors are wary of the implications of this offering on the stock's short-term performance.
Wall Street analysts forecast PRAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRAX is 456.71 USD with a low forecast of 95.00 USD and a high forecast of 843.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast PRAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRAX is 456.71 USD with a low forecast of 95.00 USD and a high forecast of 843.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Buy
0 Hold
1 Sell
Strong Buy
Current: 309.920
Low
95.00
Averages
456.71
High
843.00
Current: 309.920
Low
95.00
Averages
456.71
High
843.00
Piper Sandler
Yasmeen Rahimi
Overweight
upgrade
$450
2026-01-28
New
Reason
Piper Sandler
Yasmeen Rahimi
Price Target
$450
AI Analysis
2026-01-28
New
upgrade
Overweight
Reason
Piper Sandler analyst Yasmeen Rahimi raised the firm's price target on Praxis Precision to $1,200 from $450 and keeps an Overweight rating on the shares. The firm notes Praxis has traded up about 330% in the past 12 months, where this stock movement was predominantly driven by ulixacaltamide's success in ET and relutrigine in DEEs. As investors are now wondering how much upside remains in the stock, Piper completely updated its model encompassing ulixacaltamide, relutrigine, vormatrigine, and elsunersen. The firm models peak U.S. sales of $23B by 2046. In fact, looking across the three key value-drivers providing the greatest contribution to its price target, Piper projects Praxis to achieve over $20B in revenue with an overall penetration of less than 5% peak market share.
Needham
Ami Fadia
Buy
upgrade
$315 -> $460
2026-01-05
Reason
Needham
Ami Fadia
Price Target
$315 -> $460
2026-01-05
upgrade
Buy
Reason
Needham analyst Ami Fadia raised the firm's price target on Praxis Precision to $460 from $315 and keeps a Buy rating on the shares. The firm sees 2026 as an extension of 2025 for the stock, with multiple new drug application submissions. Praxis could also win approval for ulixacaltamide in essential tremor, if given priority review, based on the unmet need, the analyst tells investors in a research note. Needham sees positive momentum for Praxis in 2026 based on potential approval and multiple data catalysts.
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Jefferies
Andrew Tsai
70% -> 80%-90%
upgrade
$450
2025-12-29
Reason
Jefferies
Andrew Tsai
Price Target
$450
2025-12-29
upgrade
70% -> 80%-90%
Reason
After Praxis Precision Medicines announced that the FDA has granted Breakthrough Therapy Designation for ulixacaltamide for the treatment of patients with essential tremor, Jefferies analyst Andrew Tsai calls the news "fundamentally de-risking" as well as "notable FDA validation" since it can be inferred that the FDA has vetted the data package that includes two positive Phase 3 studies. The firm, which notes that programs receiving BTD have a high 73% approval rate, raises its view of the odds off success of ulixacaltamide in essential tremor to 80%-90% from 70% previously. Jefferies has a Buy rating and $450 price target on Praxis shares.
BTIG
BTIG
Buy
upgrade
$507 -> $843
2025-12-29
Reason
BTIG
BTIG
Price Target
$507 -> $843
2025-12-29
upgrade
Buy
Reason
BTIG raised the firm's price target on Praxis Precision to $843 from $507 and keeps a Buy rating on the shares. The firm views the company's launch of ulixacaltamide is "uniquely advantaged," saying Praxis will build an "unprecedented" 1M essential tremor patient database that should translate into rapid uptake. BTIG increased its net U.S. price for ulixacaltamide to $36,000 from $14,000, citing its favorable pricing analogue analysis. The firm views its assumptions as conservative given management's messaging indicating higher pricing. The market for VMAT2 inhibitors in tardive dyskinesia represents a good analogue for ulixacaltamide in essential tremors, but the latter will be a larger, less competitive, and commercially more attractive opportunity, the analyst tells investors in a research note. BTIG thinks Praxis has a "strong 2026 catalyst path." It names the stock a top pick for 2026.
About PRAX
Praxis Precision Medicines, Inc. is a clinical-stage biopharmaceutical company translating genetic insights into the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. The Company is applying genetic insights to the discovery and development of therapies for neurological disorders through two platforms, using its understanding of shared biological targets and circuits in the brain. Its platform includes Cerebrum, a small-molecule platform, which utilizes deep understanding of neuronal excitability and neuronal networks and applies a series of computational and experimental tools to develop orally available precision therapies, and Solidus, an antisense oligonucleotide platform, is an efficient, targeted precision medicine discovery and development engine anchored on a proprietary, computational methodology. The Company’s product candidates include ulixacaltamide, vormatrigine, relutrigine, PRAX-080, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
