Longboard Pharmaceuticals’ Stock Surges 8% as Citi Recommends a Buy, Citing Potential Takeover

Longboard Pharmaceuticals (NASDAQ:LBPH) saw its shares surge by 8% on Friday following Citigroup’s initiation of coverage with a buy rating. Citi cited the company’s potential as a takeover target as the basis for their recommendation.

Citi’s note highlighted its belief that Longboard’s drug bexicaserin could emerge as a “best-in-class therapy” with access to a larger patient population compared to its competitors in the DEE space.

Citing the dip in share price after Pfizer’s exit in late January, Citi expressed confidence, stating that “other strategics are likely eyeing LBPH as a potential bolt-on acquisition.”

Citi also set a price target for the stock of $40.