Broker Bell Potter has issued a new report on ASX healthcare stock Neuren Pharmaceuticals Ltd (ASX: NEU).
It has maintained its buy rating and also increased its target price.
Neuren Pharmaceuticals is a biopharmaceutical company specialising in developing new therapies for neurodevelopmental disorders that emerge in early childhood and are characterised by impaired connections and signalling between brain cells.
Its share price has risen more than 76% since January.
This has been on the back of FDA approval on key treatments developed by the company.
Despite rising significantly already in 2025, Bell Potter sees more growth in the future for this ASX healthcare stock.
Let's see what was behind the upgraded target.
Bell Potter says momentum expected to continue
In this week's report, Bell Potter said it expects another strong quarter of Daybue sales growth in the US.
For context, DAYBUE (trofinetide) is the first and only treatment approved by the U.S. Food and Drug Administration (FDA) specifically indicated for Rett syndrome in adults and pediatric patients.
This growth will be driven by expanded sales coverage and more community-based patient starts.
The broker said it expects an uptick in new patient starts from the community practice setting in 2H25 (where ~65% of US Rett patients are treated). This is rather than the larger academic institutions where much of the early adoption was derived.
It also expects a growing number of longer-treated patients who have been on Daybue >12-18 months. It said this will result in greater stability in demand/sales.
Forecast Daybue sales of US$102m should generate approximately A$16m in royalties, with European approval anticipated in Q1 2026.
Forecast unchanged – PT rises
Bell Potter made no changes to forecasts, expecting this ASX healthcare stock to remain profitable in CY25.
The broker maintains a buy recommendation and increases its target price to $25 (previously $22) ahead of an anticipated positive Q3 Daybue update.
Based on the upgraded target of $25 and today's share price, there is almost 16% upside for the ASX healthcare stock.
