Goldman Sachs analyst Salveen Richter upgraded Acadia Pharmaceuticals (ACAD) to Buy from Neutral with a price target of $72, up from $45.

The analyst sees an "upward re-rating opportunity" for the shares on upcoming events, namely Nuplazid expansion into dementia-related psychosis and the Phase 3 CLARITY-2 results in major depressive disorder. On the latter, assuming a clinical impact to major depressive disorder from COVID-19, thus removing it from the model, the price target would be $62, representing 50% upside potential to current levels, Richter tells investors in a research note.

Further, the analyst believes Acadia's existing commercial business is "somewhat able to withstand" COVID-19 given its over two-year Nuplazid inventory and high proportion of distribution to patients via mail order.