KRTX stock is running higher after the company received an upgrade from William Blair.

William Blair analyst Myles Minter initiated coverage of Karuna Therapeutics with an Outperform rating.

Back on November 21, 2019, Wedbush analyst Liana Moussatos raised her price target for Karuna Therapeutics to $134 from $38 and maintained an Outperform rating after the company reported positive topline results from its Phase 2 trial of KarXT for the treatment of acute psychosis in patients with schizophrenia, saying KarXT met the primary endpoint of mean reduction in total PANSS score compared to placebo and demonstrated statistically significant reductions in key secondary endpoints of PANSS-Positive and PANSS-Negative scores along with tolerable side effects. In a research note to investors, Moussatos says that due to KarXT likely becoming a blockbuster, she believes Karuna is likely to become an acquisition target in 2020.

On November 18, 2019, Citi analyst Mohit Bansal said the phase 2 data reported by Karuna Therapeutics for KarXT appear better than expected, better than current anti-psychotics, and could be “paradigm changing.” The drug’s “benign” safety lead him to see the potential for use as a front line agent as well, leading the analyst to raise his peak unadjusted sales estimate in schizophrenia to $4.7B from $2.3B. Given the higher peak sales potential, and higher odds assigned for the drug’s approval, Bansal raised his price target for Karuna shares to $115 from $28. The analyst, who thinks there is more upside in the stock despite today’s move, keeps a Buy rating on Karuna shares, which are up $64.52, or 365%, to $82.20.

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