** Johnson & Johnson JNJ.N said on Monday it would buy neurological drug maker Intra-Cellular Therapies ITCI.O for $14.6 billion** Piper Sandler and Leerink Partners downgrade ITCI to "neutral" from "overweight" and to "market perform" from outperform" respectively; ITCI is flat in premarket trade

** Atleast five brokerages revise ratings and PTs for ITCI after the deal, including three downgrades aside from Piper Sandler and Leerink Partners, according to data compiled by LSEG

** "Given JNJ's desire to establish itself as a leader in the CNS space and Caplyta's strong growth potential in neuropsychiatry, we had seen JNJ as an ideal potential acquirer, and see the acquisition price as fair based on our valuation for Caplyta and ITCI's pipeline"- TD Cowen

** J.P.Morgan analysts say the deal highlights strong strategic interest in neuropsych assets and ITCI is a long-term asset with multi-billion dollar revenue potential

** Avg rating of 14 brokerages covering ITCI is a "buy"; median PT is $132 - LSEG

** JNJ shares fell 7.73% in 2024 while ITCI rose 16.62%

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))