H.C. Wainwright maintains $85 target on Bright Minds stock

Published 20/02/2025, 13:46
H.C. Wainwright maintains $85 target on Bright Minds stock

On Thursday, H.C. Wainwright reaffirmed its Buy rating and $85.00 price target for Bright Minds Biosciences Inc. (NASDAQ:DRUG), a company specializing in the development of serotonergic therapies for epilepsy. The stock, currently trading at $37.40, has seen a remarkable 3,600% surge over the past six months, though InvestingPro analysis suggests the stock is trading above its Fair Value. Discover more detailed valuation metrics and 10+ additional ProTips with an InvestingPro subscription. The endorsement follows Bright Minds’ recent announcement of its first-quarter financial results for 2025, delivered on February 13, which included a reaffirmation of the timeline for their upcoming Phase 2 trial results.

Bright Minds reported that their Phase 2 trial, named BREAKTHROUGH, is evaluating BMB-101, a novel 5-HT2C agonist, for its effectiveness in treating developmental and epileptic encephalopathies (DEEs) and absence epilepsy. The company expects to release top-line readout from this trial in the second quarter of 2025. This update was disclosed in the Management’s Discussion and Analysis (MD&A) section of Bright Minds’ F1Q25 filing in the Canadian securities database, SEDAR.

The filing did not reveal any significant new information compared to the initial launch report from January 10, but it did confirm that enrollment for the BREAKTHROUGH trial is ongoing. Additionally, Bright Minds highlighted that it has an adequate cash position to support its operations for the next 12 months, and it is continuing the development of preclinical assets BMB-202 and BMB-201. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 126.15 and minimal debt, earning a "GOOD" overall Financial Health score.

Bright Minds concluded the quarter with C$57.9 million in cash, a reflection of the successful US$35 million private placement completed in November 2024. With a current market capitalization of $300 million and analyst consensus remaining bullish, the financial stability and progress in its clinical trials position Bright Minds as a company with potential in the epilepsy treatment market, particularly with BMB-101 which could emerge as a leading therapy pending the results of the Phase 2 trial.

In other recent news, Bright Minds Biosciences Inc. has garnered attention following coverage from Piper Sandler and Baird. Piper Sandler initiated coverage on the company, assigning an Overweight rating with a price target of $93.00, highlighting the potential of its lead asset, BMB-101. This asset, described as a differentiated 5-HT2C agonist, is expected to be effective in treating drug-resistant epilepsies. Baird also initiated coverage, assigning an Outperform rating and a price target of $75.00, noting the company’s strategic acquisition of Longboard Pharmaceuticals for $2.5 billion as a positive development. Both firms emphasized the significance of BMB-101 advancing into phase 2 development for treating Developmental Epileptic Encephalopathy (DEE) and Absence Epilepsy. Analysts from Piper Sandler anticipate that the second half of 2025 will be crucial for the company, with expected topline results from a Phase 2 trial potentially impacting its stock value. Baird’s coverage reflects confidence in the company’s growth prospects and its innovative approach to treating neurological disorders. These developments position Bright Minds Biosciences as a company to watch in the pharmaceuticals market.

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