GH Research stock rating reiterated at Buy by Stifel amid FDA discussions

Published 07/08/2025, 16:32
GH Research stock rating reiterated at Buy by Stifel amid FDA discussions

Investing.com - Stifel has reiterated its Buy rating and $32.00 price target on GH Research PLC (NASDAQ:GHRS) following the company’s second-quarter 2025 earnings report. Currently trading at $11.96, the stock sits well below analyst targets ranging from $25 to $40, with InvestingPro data indicating the company is slightly undervalued based on its Fair Value analysis.

The research firm noted that GH Research is working through regulatory discussions with the FDA regarding its GH001 candidate. While the company’s proprietary device has been cleared, the FDA has requested additional information about rat-specific toxicity observed in preclinical studies. The company maintains a strong financial position with a current ratio of 29.7x and virtually no debt, providing ample runway for its regulatory process.

GH Research is consulting external experts on this matter, and Stifel believes the issue will likely be resolved in the near term, citing evidence suggesting the toxicity is specific to rats and favorable patient data from the Phase 2b trial in Europe, including six-month open-label extension safety data with spirometry results.

Stifel expressed confidence in GH Research’s position within the psychedelic class, highlighting its "compelling efficacy profile and ease-of-use" as competitive advantages.

The company has confirmed plans to begin its pivotal program in treatment-resistant depression (TRD) next year and is currently preparing for its End-of-Phase 2 meeting with regulators.

In other recent news, GH Research PLC has made significant progress in its engagement with the U.S. Food and Drug Administration (FDA) regarding the clinical hold on its Investigational New Drug Application for GH001. The company reported that only one issue remains to be resolved, specifically concerning respiratory tract histology findings in rats. GH Research has submitted a complete response to the FDA, addressing this issue, and is now awaiting further feedback. JMP Securities has reiterated its Market Outperform rating for GH Research, maintaining a price target of $39, citing the company’s progress in FDA discussions and strong clinical data. Canaccord Genuity also continues to support GH Research, reiterating a Buy rating with a $35 price target, highlighting the company’s submission to the FDA in June. Meanwhile, Cantor Fitzgerald has assumed coverage with an Overweight rating and a $25 price target, noting the potential impact of psychedelics on mental health disorders. These ratings reflect ongoing optimism among analysts about GH Research’s prospects in the mental health sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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