BioXcel upgraded at Goldman Sachs on recent underperformance
BioXcel Therapeutics (NASDAQ:BTAI) rallied on Thursday after Goldman Sachs upgraded the commercial-stage biotech to Neutral from Sell, noting the recent underperformance in its shares.
The analyst Corinne Jenkins and the team point out that since the firm added BioXcel (BTAI) to its Sell list about a year ago, the stock has lost ~39%, underperforming the broader market and its coverage universe.
"At this time, we believe valuation more accurately reflects the underlying business," the analysts wrote, adding that the consensus estimates, which they previously thought to be elevated, had come down by about 85% on average.
Therefore, the team thinks that BioXcel (BTAI), which won FDA approval in April for its commercial product, Igalmi, "will have limited downside to revenue estimates over the next year," with minimal impact on share price during the early rollout.