The Neuren Pharmaceuticals Ltd (ASX: NEU) share price was in fine form on Monday.
The ASX 200 stock jumped 30% to $22.20 following the release of top-line results from its Phase 2 clinical trial of NNZ-2591 in children with Phelan-McDermid syndrome (PMS).
PMS has severe quality of life impacts for those living with the syndrome, as well as parents and siblings. At present, there are no approved treatments for it despite its severely debilitating impact.
Following yesterday's gain, the pharmaceutical company's shares are now up 200% over the last 12 months.
But if you thought the gains were over, think again. That's because analysts at Bell Potter believe the company's shares can rise meaningfully from current levels.
Why this ASX 200 stock could keep rising
According to the note, the broker has upgraded Neuren's shares to a buy rating and lifted its price target on them by 54% to $27.
Based on the current Neuren share price, this implies a potential upside of approximately 22% for investors over the next 12 months.
Commenting on the ASX 200 stock's trial results, the broker said:
We have far greater confidence in NNZ-2591 following the Phase 2 results and therefore materially increase our Probability of Success in PMS and the other three indications which are similarly characterised disorders. We increase our PT to $27.00 following the increased value attributed to NNZ-2591. This represents >15% upside to the current price hence we upgrade to a BUY. Additional catalysts are expected to continue driving interest over the next 12 months, specifically (1) DAYBUE quarterly updates in the US, (2) DAYBUE submissions in Canada & Europe, (3) additional NNZ2591 Phase 2 results, and (4) NNZ-2591 Phase 3 preparations.
