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On Wednesday, Cantor Fitzgerald analysts assumed coverage of GH Research PLC (NASDAQ: GHRS) with an Overweight rating and a price target set at $25.00. The company, currently trading at $12.08, has shown impressive momentum with a 51% price return over the past six months and a 72.5% year-to-date gain, according to InvestingPro data. The analysts continue to support the company’s potential in the mental health sector, highlighting the transformative impact of psychedelics on various mental health disorders, such as depression, PTSD, and anxiety.
The analysts emphasize the significant unmet need for effective treatments in these areas, noting the limitations of current options like SSRIs and atypical antipsychotics. They point to the growing infrastructure of interventional psychiatry practices in the U.S., which are preparing to deliver psychedelic therapies to patients in need. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a robust current ratio of 29.71, though it’s currently not profitable.
According to Cantor Fitzgerald, the total addressable market (TAM) for psychedelics could eventually reach $50 billion annually, potentially serving 1 to 1.5 million patients each year. The analysts believe there is ample opportunity for multiple companies to succeed in this space, offering a range of psychedelic substances and novel synthetic products. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels, with analyst targets ranging from $29 to $40.
The report also mentions the existing involvement of companies like JNJ in the psychedelic market and suggests that other large pharmaceutical firms, including those from Japan, may enter the sector through acquisitions.
In other recent news, GH Research has completed the enrollment phase of the Open-Label Extension (OLE) portion of its Phase 2b trial for GH001, an investigational inhaled drug for treatment-resistant depression. This development is a significant milestone in the company’s clinical progress. Analysts from H.C. Wainwright have reaffirmed a Buy rating for GH Research, maintaining a price target of $40. The analysts highlighted the potential initiation of the pivotal Phase 3 program for GH001 in treatment-resistant depression, which could begin in the first half of 2026. They also noted the importance of GH Research’s planned submission of a full response to the FDA regarding the Investigational New Drug hold, expected in mid-2025, with a decision anticipated in the second half of 2025.
Additionally, GH Research is exploring further applications for GH001, including postpartum depression and bipolar II disorder, which could broaden the drug’s market opportunities. H.C. Wainwright analysts expressed confidence in the company’s financial health, noting that its well-capitalized balance sheet should support ongoing clinical advancements. These recent developments contribute to a positive outlook for GH Research, according to the analysts.
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