Praxis Precision Medicines' (PRAX) recent share pullback provides investors an "interesting entry point" as the reward/risk proposition of over $7.8 billion in revenue potential by 2035 is attractive, RBC Capital Markets said in a note emailed Thursday.

The investment firm said Praxis' ulixacaltamide, a potential treatment for essential tremor, has a "reasonable likelihood" of reaching more than $4.3 billion in sales.

RBC said that while ulix faces some regulatory risks, checks with experts indicate it can make it to market, where there is a "large unmet need and strong desire to prescribe" among physicians.

Meanwhile, Praxis may also see a "modest opportunity" for its relutrigine potential treatment for genetically driven epilepsy, RBC said, adding that there is a "strong mechanistic rationale and supportive early data."

RBC started coverage of Praxis with an outperform rating and $449 price target.

Praxis shares were up past 2% in morning trading.

Price: 277.86, Change: +7.85, Percent Change: +2.91