Canaccord cuts Cybin stock target to $73, maintains Buy rating

On Wednesday, Canaccord Genuity revised its price target for Cybin Inc. (NYSE:CYBN) shares, reducing it to $73.00 from the previous $86.00, while continuing to endorse the stock with a Buy rating. The adjustment comes as the firm updates its financial models to accommodate for increased research and development costs and an anticipated capital raise in mid-2025. According to InvestingPro data, Cybin currently maintains a market capitalization of $187.81M and shows a WEAK overall financial health score, with rapid cash burn being a key concern.

Sumant Kulkarni, an analyst at Canaccord Genuity, expressed continued confidence in CYB003, Cybin’s investigational therapy for major depressive disorder (MDD), assigning a 40% probability of approval. Kulkarni anticipates the potential market launch to occur in the fiscal year 2029, ending in March 2028. Despite the price target revision, the projected peak sales remain steady at C$4.0 billion in the fiscal year 2036.

Cybin is currently advancing its CYB003 program into a critical Phase 3 stage, prompting Canaccord to increase its forecast for research and development expenditure for fiscal years 2025 and 2026. The firm also expects Cybin to seek a modest funding round of approximately $25 million around mid-2025 to support ongoing development activities.

The analyst highlighted that Cybin had C$136.3 million in cash as of December 31, 2024, and has recently implemented a $100 million at-the-market (ATM) offering program. These financial strategies are part of Cybin’s preparation for more significant fundraising efforts, anticipated to follow encouraging Phase 3 data for CYB003 in the fiscal year 2027. InvestingPro analysis reveals a strong current ratio of 12.6, indicating robust short-term liquidity, though the company’s EBITDA stands at -$93.7M for the last twelve months. Want deeper insights? InvestingPro offers 6 additional key tips about Cybin’s financial position.

Canaccord’s revised price target also reflects a new exchange rate assumption of $0.70 USD/CAD, a decrease from the previous rate of $0.73 USD/CAD. This currency adjustment has influenced the discounted cash flow (DCF)-based price target to shift from $86 to the current $73. Kulkarni’s commentary underscores a steady outlook for Cybin’s CYB003 and its potential in the MDD treatment landscape, despite the near-term financial recalibrations. The strong analyst consensus of 1.2 (where 1 is a Strong Buy) aligns with this positive outlook, according to InvestingPro data, with price targets ranging from $24.57 to $190.46.

In other recent news, Cybin Inc. has been the subject of several analyst ratings and updates. H.C. Wainwright has reaffirmed its Buy rating on the company’s shares, maintaining a steady price target of $190. Concurrently, Canaccord Genuity adjusted its price target on Cybin’s shares, bringing it down to $86 from the previous $96, while keeping a Buy rating on the stock.

In terms of development, Cybin is currently conducting a Phase 2a trial for its compound CYB004, aimed at treating generalized anxiety disorder. The company also announced the initiation of a strategic partnership agreement with Segal Trials to commence a multinational Phase 3 program evaluating CYB003 for the treatment of Major Depressive Disorder (MDD).

Cybin’s recent Phase 2 study of CYB003 showed all participants responded to treatment, with 71% achieving remission after two 16 mg doses. The company has initiated its Phase 3 PARADIGM multinational pivotal program to further evaluate the efficacy and safety of CYB003 in a larger MDD population.

These are some of the recent developments in Cybin’s ongoing efforts to advance its psychedelic-based treatments through the clinical pipeline, potentially transforming the treatment landscape for mental health disorders.

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