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Pear Therapeutics closed up 25% on Monday: explained here

By:
on Jan 3, 2022
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  • BTIG assumed coverage of Pear Therapeutics with a "buy" rating and a PT of $12.
  • Pear has three commercial, FDA authorised prescription drug therapeutics in the market.
  • Shares of the Boston-headquartered company closed up nearly 25% on Monday.

Shares of Pear Therapeutics Inc (NASDAQ: PEAR) closed up nearly 25% on Monday after BTIG said the Boston-headquartered company was the best positioned in the prescription digital therapeutics (PDT) space.

BTIG’s Marie Thibault sees a 60% upside

On Monday, analyst Marie Thibault assumed coverage of the stock with a “buy” rating and a price target of $12 a share that represents a 60% upside from here. In her note, Thibault wrote:

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There are clear advantages to PDTs, including few significant side effects, reduced barriers to treatment, access at any time via consumer technology, increased insight for clinicians, and lower costs. We believe the appeal and promise of the PDT industry is too important to dismiss.

Pear Therapeutics listed on the Nasdaq Stock Exchange last month via a SPAC merger with Thimble Point Acquisition Corp that generated roughly $175 million.

Other reasons why she likes Pear Therapeutics

Currently, Pear has three commercial, FDA authorised PDTs in the market that treat chronic insomnia, opioid use, and drug addiction. Thibault agreed there were risks associated with PDTs, including rate of commercial adoption, but said:

PEAR has a head start on a regulatory, commercial, and operational basis, with its PearCreate and PearConnect platforms intended to rapidly iterate and distribute new PDTs. Its leadership and ability to offer multiple PDTs of its own and eventually host other PDTs, give it an advantage.

Her bullish call is in line with Citigroup’s Neena Bitritto-Garg, who also initiated coverage of Pear last week with an even higher price target of $13 a share. In December, Pear Therapeutics acquired a digital therapeutic for depression from Waypoint Health Innovations.