** With eased interest rates and an uptick in M&A, BTIG says sentiment has been positive for small and mid-cap biotech stocks in 2025

** Improved regulatory efficiency maybe a key tailwind for the sector in 2026 - BTIG

** "We think 2026 will be a banner year," brokerage says

** Brokerage initiates coverage on Praxis Precision PRAX.O, Sionna Therapeutics SION.O, Rapport Therapeutics RAPP.O, and VTV Therapeutics VTVT.O, with broadly bullish ratings

** Brokerage names PRAX as its top pick for 2026, citing blockbuster potential for its neurological drug pipeline

** Brokerage says State Street SPDR S&P Biotech ETF XBI.N, a barometer for small and mid-cap biotech stocks sentiment, has risen above 100; a number above 100 indicates sentiment is better

** YTD, PRAX up 139%, RAPP rise 43%, VTVT up 118% vs a 25% increase in the S&P 500 - Biotechnology .SPLRCTKBI index

** SION up 117% since its IPO in February 2025 vs IPO price of $18** Following are the ratings and PTs on the stock:

(Reporting by Kanishka Ajmera in Bengaluru)

((mail to: Kanishka.Ajmera@thomsonreuters.com))