UPDATE: Bank of America Initiates Corcept Therapeutics at Underperform on Korlym Launch Caution

Bank of America initiated its coverage on Corcept Therapeutics CORT with an Underperform rating and a price objective of $4. Bank of America said, "We are initiating CORT at Underperform with a DCF derived price objective of $4 based on cautious expectations for Korlym, its drug for Cushing's Syndrome. Our discussions with several Cushing's experts indicated that Korlym adoption could be slow due to challenges associated with diagnosis, educating the targeted physicians, and off-target impacts. Our revenue estimates for the next three years are 30-50% below consensus. The stock looks modestly expensive on a multiple of 2013 consensus sales, and quite rich based on our forecast. We also have low expectations for Korlym in psychotic depression (phase 3)." Corcept Therapeutics closed at $4.44 on Thursday.