Investing.com - Leerink Partners reiterated an Outperform rating and $5.00 price target on Ovid Therapeutics Inc (NASDAQ:OVID) following the company's KCC2 research and development day. The stock has surged 933% over the past year and trades at $2.79 with a market cap of $368 million, though InvestingPro analysis suggests it's slightly overvalued relative to its Fair Value.
The firm said it became more positive on the potential for the company's KCC2 portfolio to represent a differentiated approach to treating psychosis and potentially other psychiatric disorders. The event emphasized the mechanistic rationale for KCC2 activation as a strategy to address the underlying pathophysiology of psychosis.
Leerink said the event highlighted management's clinical translation plans with a clear focus on linking preclinical pharmacology to clinically actionable biomarkers. The firm noted a Phase 1 SAD/MAD and a ketamine challenge study are expected to initiate in 2026.
A potential Phase 2 study in schizophrenia is expected in 2027. Leerink said the story is increasingly shifting toward the generation of early datasets in humans and patients. According to InvestingPro Tips, the stock has shown significant returns recently, though RSI suggests overbought territory. Investors can access 14 additional ProTips and comprehensive analysis in the detailed Pro Research Report available for OVID.
The firm said the datasets can help establish safety, CNS exposure, target engagement, and biomarker evidence of activity supporting clinical validation of the mechanism.
In other recent news, Ovid Therapeutics reported impressive financial results for the fourth quarter of 2025, significantly exceeding earnings expectations. The company achieved an earnings per share of $0.06, surpassing the forecast of -$0.1137, and reported revenue of $718,000, which was well above the anticipated $80,670. These results mark a substantial earnings surprise, highlighting the company's strong financial performance. In addition, H.C. Wainwright raised its price target for Ovid Therapeutics to $4.00 from $2.00, maintaining a Buy rating due to increased confidence in the prospects of OV329. B. Riley also reiterated a Buy rating with a $5.00 price target following the company's results, noting strategic plans to expand OV329 into pediatric TSC seizures and infantile spasms. Leerink Partners maintained an Outperform rating with a $5.00 price target, emphasizing encouraging safety data for OV329 at higher doses. These developments reflect positive sentiment and strategic growth initiatives for Ovid Therapeutics.