H.C. Wainwright maintains $40 target on GH Research stock

Published 27/01/2025, 14:10
H.C. Wainwright maintains $40 target on GH Research stock

On Monday, H.C. Wainwright reiterated a Buy rating on shares of GH Research PLC (NASDAQ:GHRS), with a price target of $40.00. Currently trading at $8.83, the stock sits well below analysts' consensus targets ranging from $18 to $40. According to InvestingPro data, the company appears fairly valued based on its proprietary Fair Value model. The endorsement follows a meeting on January 14 with GH Research's management team, including CEO Villy Valcheva, VP of Finance Julie Ryan, and COO Aaron Cameron. The discussions covered a range of topics from their lead program GH001, an inhalable psychedelic compound, to recent Phase 2 successes and future regulatory steps.

The firm's lead program, GH001, is a unique inhalable formulation of mebufotenin (5-MeO-DMT) that has shown rapid action and short duration effects. Analysts highlighted the substance's potential following encouraging Phase 2 data in treating postpartum depression (PPD (NASDAQ:PPD)) and bipolar depression (BPII). The anticipation now turns to the upcoming Phase 2b data for treatment-resistant depression (TRD). With a strong financial health score of 2.25 and a current ratio of 15.83, InvestingPro analysis shows the company is well-positioned to fund its clinical development programs.

H.C. Wainwright analysts expressed confidence in the upcoming Phase 2b trial results for GH001 and the company's response to the FDA's Investigational New Drug (IND) hold. Positive outcomes in these areas are seen as key drivers that could propel GH Research's stock to new all-time highs.

GH Research has been named a top pick for 2025 by H.C. Wainwright within their coverage universe. The firm's analysts expect that the combination of trial results and regulatory progress will significantly benefit the company's valuation. The reiterated Buy rating and $40 price target reflect this optimistic outlook for GH Research's prospects. The stock has shown strong momentum with a 26% gain year-to-date, and InvestingPro subscribers can access additional insights through exclusive financial metrics and real-time analysis tools.

In other recent news, GH Research PLC has reported significant progress in its clinical trials, including substantial findings in phase 2a trials for its lead product candidate, GH001. The trials focused on postpartum depression and bipolar II disorder, both meeting their primary endpoints. The company also reported a cash position of $182.6 million, indicating strong financial health. GH Research has completed an inhalation toxicology study in dogs with no adverse findings and is preparing to respond to the FDA's request for additional device design verification.

Analyst firms H.C. Wainwright and Canaccord Genuity have maintained their Buy ratings on GH Research. H.C. Wainwright reaffirmed a $40 price target while Canaccord Genuity adjusted its target from $31 to $28. The company has also announced the appointment of Dr. Velichka Villy Valcheva as its new Chief Executive Officer. Top-line data from its Phase 2b trial in treatment-resistant depression are expected in the first quarter of 2025. These are among the recent developments that underscore GH Research's ongoing commitment to advancing its clinical programs.

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