BTIG starts Pear Therapeutics at buy; PT $12

Pear Therapeutics

BTIG initiated coverage of Pear Therapeutics (NASDAQ:PEAR) with a “buy” rating and $12 price target. The stock closed at $6.20 on Dec. 31. 

Pear is a leader in prescription digital therapeutics (PDTs), with three commercial, FDA-authorized products, expanding payer coverage and a long product pipeline. Pear’s first three PDTs aim to treat substance use disorder, opioid use disorder, and chronic insomnia. 

“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,” writes analyst Marie Thibault.

She said the PDT field is still maturing and risks include unknowns like the rate of commercial adoption, increasing payer coverage, and long-term clinical and health economic findings. 

“Still, we believe the appeal and promise of the PDT industry is too important to dismiss and we believe PEAR is one of the best-positioned companies in the space,” Ms. Thibault added. 

In addition, she 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. “We think PEAR’s leadership, its ability to offer multiple PDTs of its own and eventually host other PDTs, give the company an advantage.”