MindMed stock rating reiterated at Outperform by Oppenheimer on growth outlook

Investing.com - Oppenheimer has reiterated an Outperform rating and $25.00 price target on MindMed (NASDAQ:MNMD), citing the company’s key progress and improving market sentiment. Currently trading at $13.39, the stock is considered slightly undervalued according to InvestingPro metrics.

The research firm highlighted MindMed’s strong year-to-date performance, with shares up 78% compared to the 22% gain in the XBI biotech index. InvestingPro data shows an even stronger 92.4% YTD return and impressive 112.5% gain over the past year. Oppenheimer noted that the company’s recent $225 million financing provides an expected cash runway through several important upcoming catalysts.

The firm anticipates that MindMed’s Phase 3 programs for MM120 in both Generalized Anxiety Disorder (GAD) and Major Depressive Disorder (MDD) will replicate the efficacy demonstrated in Phase 2b studies, with readouts expected in 2026. These results could enable potential FDA approval and product launch in 2028. With analyst price targets ranging from $16 to $55 and a strong buy consensus, investors should note MindMed’s next earnings report is scheduled for November 12.

Oppenheimer views MindMed’s approximately $2 billion commercial opportunity as underappreciated by the market. The firm also pointed to a recent JAMA publication that reflects increasing recognition for MM120’s potential to drive durable remission. With a current market cap of $1.02 billion and a high beta of 3.31 indicating significant volatility, MindMed represents a speculative growth opportunity in the emerging psychedelics space.

Recent M&A activity in the sector represents increasing strategic interest in psychedelics, according to Oppenheimer, which also cited key opinion leader diligence and Johnson & Johnson discussions as indicating tailwinds for the psychedelics market.

In other recent news, Mind Medicine (MindMed) Inc. announced the pricing of an underwritten public offering of 18,375,000 common shares at $12.25 per share, aiming to raise approximately $225 million in gross proceeds. This move follows their earlier announcement of plans to conduct a public offering of common shares and pre-funded warrants to certain investors. The company has also provided underwriters a 30-day option to purchase an additional 2,756,250 common shares at the public offering price. In its second-quarter earnings report for 2025, MindMed revealed a cash runway extending into 2027, underscoring its commitment to research and development. However, the company reported an earnings per share of -$0.50, which was below the forecast of -$0.37 by 35.14%. Despite missing earnings estimates, the stock saw an increase in aftermarket trading, reflecting investor confidence in the company’s long-term strategy. These developments highlight MindMed’s ongoing efforts to bolster its financial position and continue its work on treatments for brain health disorders.

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