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On Wednesday, H.C. Wainwright reaffirmed its Buy rating and $40.00 price target for GH Research PLC (NASDAQ: GHRS), representing a potential 326% upside from the current price of $9.39. According to InvestingPro data, the stock has shown strong momentum with a 34% gain year-to-date, despite recent volatility. The firm’s analysts highlighted upcoming events which they believe could positively impact the company’s stock value. These events include the completion of enrollment in the Open-Label Extension (OLE) portion of the Phase 2b trial for GH001, the company’s investigational inhaled drug for treatment-resistant depression (TRD).
GH Research has recently completed the enrollment phase of their OLE study for GH001, also known as mebufotenin, which is an inhaled formulation of 5-methoxy-N,N-dimethyltryptamine (5-MeO-DMT). This marks a significant step in the company’s clinical development process. The analysts also noted the importance of the company’s planned submission of a full response to the FDA regarding the Investigational New Drug (IND) hold, which is expected in mid-2025. A decision by the FDA on this matter is anticipated in the second half of 2025.
Furthermore, H.C. Wainwright analysts are looking ahead to 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 emphasized the drug’s demonstrated efficacy and durability in treating TRD. The analysts also pointed out that GH Research is exploring additional indications for GH001, including postpartum depression (PPD (NASDAQ:PPD)) and bipolar II disorder (BP-II), which could expand the drug’s market opportunity.
The firm’s analysts have expressed confidence in GH Research’s financial position, stating that the company’s well-capitalized balance sheet is expected to support continued progress in its clinical programs. InvestingPro analysis confirms this view, showing the company holds more cash than debt and maintains a robust current ratio of 17.23, indicating strong liquidity to fund its development pipeline. The analysts concluded their commentary by reiterating their Buy rating and $40 price target, saying, "With GH001 demonstrating compelling efficacy and durability in TRD, additional indications in postpartum depression (PPD) and bipolar II disorder (BP-II) expanding its market opportunity, and a well-capitalized balance sheet fueling continued progress, we see GHRS as ideally for meaningful near-term upside. Reiterate Buy rating and $40 PT." For deeper insights into GHRS’s financial health metrics and 8 additional exclusive ProTips, visit InvestingPro.
In other recent news, GH Research PLC has reported significant developments regarding its GH001 therapy for treatment-resistant depression (TRD). The company announced that its Phase 2b trial met its primary endpoint, showing a substantial reduction in depression symptoms as measured by the Montgomery-Åsberg Depression Rating Scale (MADRS). Notably, 57.5% of patients achieved remission by Day 8, with results indicating a -15.5 point change compared to the placebo group. The trial’s positive outcomes have led to several analyst firms adjusting their ratings and price targets for GH Research. Stifel increased its price target to $32, maintaining a "Buy" rating, while Rodman & Renshaw raised its target to $42, also keeping a "Buy" rating. Cantor Fitzgerald initiated coverage with an Overweight rating and a $14 price target, citing GH001’s potential to challenge existing market leaders. H.C. Wainwright reiterated a Buy rating with a $40 target, emphasizing the therapy’s promising trial results. These recent developments highlight the potential of GH001 to become a transformative treatment option in the TRD market.
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