Biohaven's (BHVN) troriluzole to treat neurodegenerative diseases could see up to a 100% upside if the company overcomes regulatory hurdles amid the US Food and Drug Administration's more sponsor-friendly stance, RBC Capital Markets said in a Thursday note.

Considering shares as undervalued on epilepsy and degrader programs, the analysts said the drug candidate could make for an even more interesting setup for the stock.

According to the note, factors that could support FDA leniency for troriluzole include its largely safe and well-tolerated data and design to target a rare disease with no approved treatments.

RBC reiterated its outperform rating on the stock and adjusted its price target to $22 from $23.

Price: 15.51, Change: +0.55, Percent Change: +3.68