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Maxim Group Initiates Coverage on 10 Psychedelic Stocks

The post Maxim Group Initiates Coverage on 10 Psychedelic Stocks appeared first on Microdose.

It wasn’t long ago that people were complaining about…

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The post Maxim Group Initiates Coverage on 10 Psychedelic Stocks appeared first on Microdose.

It wasn’t long ago that people were complaining about Wall Street not giving the psychedelic medicine industry enough attention. Despite firms continuing to build their reputations and get listed on major exchanges, few analysts had given the sector much coverage.

Well, it seems this has begun to change, with recent news of Compass Pathways getting positive analyst coverage, Cybin getting very bullish price targets, as well as Field Trip Health receiving a very positive Buy rating.

This week the industry received more positive coverage, with the Maxim Group giving Buy ratings to several psychedelic medicine stocks.

10 Psychedelic Stocks

The Maxim Group is a “leading full-service investment bank, securities and wealth management firm headquartered in mid-town Manhattan at the iconic Chrysler Building…providing a comprehensive array of financial services including investment banking, global institutional sales, equity research…”

The firm recently released its updated analyst coverage for the healthcare sector, giving 10 psychedelic medicine stocks positive Buy ratings and bullish price ratings.

Here’s a brief summary (prices as of the time of writing, in USD unless stated otherwise):

MindMed

NASDAQ: MNMD
Rating: BUY
12-Month Target Price: $6
Latest closing price: $3.41

One of the de-facto industry leaders, MindMed’s pipeline and dynamic development plan puts them at the top of the pack. Having already received a year’s worth of bull runs and NASDAQ uplist buzz, the price target isn’t as bullish as some fans might hope. Still, at almost 100% from its current price the analyst believes there’s a good year ahead for MindMed.

See our MindMed vs ATAI deep dive for a closer look at the company.

Compass Pathways

NASDAQ: CMPS
Rating: BUY
12-Month Target Price: $70.00
Latest closing price: $37.27

Compass received FDA Breakthrough Therapy designation for psilocybin therapy in 2018, was the first psychedelic company to list on the NASDAQ, and is currently the second biggest firm in terms of market cap. With its COMP360 psilocybin treatment for depression having just completed the industry’s largest-ever clinical trial (Phase 2b), Compass continues to be a leader in the space and is on track to potentially be one of the first to market with psilocybin for depression.

Maxim’s target of $70 is in line with other recent coverage, giving the stock a very strong 12-month prediction.

Cybin

NEO: CYBN.NE
Rating: BUY
12-Month Target Price: $5
Latest closing price: $2.12

With its CYB001 sublingual psilocybin for major depressive disorder in advanced clinical trials and new compounds like CYB003 and CYB004 aiming to treat big conditions like anxiety disorder, Cybin is quietly making some waves on Wall Street.

Other analysts have given Cybin targets of $10 to $15, with Maxim staying a bit more conservative at $5 – still over 100% of its current price.

Field Trip Health

TSX: FTRP.TO
Rating: BUY
12-Month Target Price: $11
Latest closing price: $5.63

Field Trip is another player receiving some analyst attention, with some buzz around its recent application to uplist to the NASDAQ exchange. The company is attractive to many analysts due to its model of in-person clinics that will likely give the company revenue much sooner than others in the space. Field Trip also has drug development expected to enter trials soon.

At $11 Maxim is predicting more than 100% gain in the next year.

Mydecine

NEO: MYCO.NE
Rating: BUY
12-Month Target Price: $1
Latest closing price: $0.33

“Mydecine is likely to be among the first to reach approval in psychedelic medicine. However, at an $80M USD market cap, there is a significant valuation gap with other players in the space with similar timelines,” says Maxim’s analyst report.

Mydecine’s psilocybin compound MYCO-001 for PTSD is set to enter phase 2a trials this year and the company recently set substance abuse disorder and smoking cessation for its MYCO-004 compound, two huge potential markets.

At $1 the report predicts a potential 300% gain from current prices, bullish indeed.

Enveric

NASDAQ: ENVB
Rating: BUY
12-Month Target Price: $6
Latest closing price: $2.19

Enveric recently acquired private psychedelic player MagicMed, making the firm one of the few psychedelic companies on the NASDAQ. From the report: “The MagicMed acquisition brings in a library of hundreds of derivatives of psychedelic compounds – the Psybrary, with 15 patents filed to date, covering more than 100M possible tryptamines, as well as entactogen compounds…”

Enveric now has a dual cannabinoid and psychedelic pipeline focused on oncology and patient care.

PharmaTher

CSE: PHRM.CN
Rating: BUY
12-Month Target Price: $1.50
Latest closing price: $0.725

PharmaTher is building a pipeline of ketamine-based compounds, with several drugs in the trial stages. The company is broadening its product portfolio and advancing several options with the FDA, including different, patented, delivery systems for their compounds.

The company’s stock has been one of the industry’s top recent gainers and the report predicts it will continue.

Mind Cure Health

CSE: MCUR.CN
Rating: BUY
12-Month Target Price: $1
Latest closing price: $0.36

Mind Cure is developing a pipeline of ibogaine for the treatment of traumatic brain injury, including a synthetic manufacturing process, as well as digital therapeutics, nootropic, adaptogenic, and general wellness products.

Mindset Pharma

CSE: MSET
Rating: BUY
12-Month Target Price: $1
Latest closing price: $0.37

Mindset Pharma is working to create optimized and patentable next-generation psychedelic medicines to treat neurological and psychiatric disorders. They are developing novel compositions that improve efficacy and pharmaceutical profiles of compounds like psilocybin, DMT and 5-MeO-DMT. Their first drug is currently in the IND application process with the FDA.

PsyBio Therapeutics

OTCPINK: PSYBF
Rating: BUY
12-Month Target Price: $1.25
Latest closing price: $0.385

From the PsyBio website: “PsyBio Therapeutics is developing biosynthetic psychoactive compounds which offer a new paradigm of treatment to reverse the course of mental health issues.” PsyBio is working to get its bacteria-produced psilocybin and tryptamine towards clinical trials.

While behind other firms in terms of advancement, the analyst sees potential, giving it a very bullish price target.

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