Undervalued VistaGen Therapeutics, Analyst Highlights Potential In Anxiety Treatment
Portfolio Pulse from Vandana Singh
William Blair initiated coverage on VistaGen Therapeutics Inc (NASDAQ:VTGN), highlighting the potential of its lead product Fasedienol (PH94B) for treating social anxiety disorder (SAD). Despite a negative Phase 3 study, PALISADE-1, the analysts believe the market underappreciates the product's lack of abuse potential compared to benzodiazepines. They estimate a fair value of $14 for VTGN shares, which are currently undervalued. The company's portfolio also includes treatments for other mental and women's health issues. VTGN shares rose 13.42% to $4.14.
December 04, 2023 | 7:39 pm
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William Blair initiated coverage on VistaGen Therapeutics with an Outperform rating, citing the potential of Fasedienol for SAD treatment. Despite a negative Phase 3 study, the firm sees the product as undervalued with a fair value of $14 per share.
The initiation of coverage by William Blair with a positive outlook and a fair value estimate significantly higher than the current trading price is likely to instill confidence in investors and could lead to a short-term increase in VTGN's stock price. The recent rise in share price following the coverage suggests a positive market reaction.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100