Deutsche Bank Initiates Coverage on Targacept

Deutsche Bank has initiated coverage on Targacept (NASDAQ: TRGT) with a Buy rating and $32 price target.

In a note to clients, Deutsche Bank writes, "Targacept is developing drugs to treat depression, ADHD, and other neurological conditions. Its lead compound, TC-5214, is in phase 3 for treatment-resistant major depressive disorder (MDD). With better efficacy and fewer sideeffects than other drugs in this class, we estimate TC-5214 could be a $3.5B+ drug WW. We rate the stock Buy based on our expectation phase 3 will be positive in late 2011."

TRGT is trading at $22.38.