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Investing.com - Stifel has reiterated its Hold rating and $2.00 price target on Neumora Therapeutics (NASDAQ:NMRA), currently trading at $1.67, following the company’s second-quarter 2025 earnings report. According to InvestingPro data, the stock has fallen over 86% in the past year, though analysis suggests it may be undervalued at current levels.
The research firm noted that after the failure of navacaprant in the KOASTAL-1 major depressive disorder (MDD) trial, Neumora has implemented more rigorous approaches to execution for the upcoming KOASTAL-2 and KOASTAL-3 studies, which are expected to report results in the first and second quarters of 2026. The company maintains a strong liquidity position with a current ratio of 8.98, and InvestingPro data shows it holds more cash than debt on its balance sheet.
Stifel expressed skepticism about the drug’s mechanism in MDD, citing both the lack of separation versus placebo in KOASTAL-1 and Johnson & Johnson’s decision to discontinue their similar compound, aticaprant.
Neumora’s lead M4 PAM asset is expected to produce Phase 1 safety and pharmacokinetic/pharmacodynamic data in the first quarter of 2026, which Stifel acknowledges offers "interesting optionality" despite being at an early stage.
The company also announced plans to explore its NLRP3 candidate for obesity treatment, with preclinical data expected this fall, while its V1AR-antagonist program remains on track to deliver data by the end of 2025.
In other recent news, Neumora Therapeutics reported a positive earnings surprise for the second quarter of 2025. The company announced an earnings per share (EPS) of -$0.33, surpassing analysts’ estimates of -$0.45. This represents a 26.67% improvement over projections. Despite the better-than-expected EPS, the company’s stock experienced a decline in aftermarket trading. Neumora Therapeutics maintains a strong cash position, which may support its ongoing clinical trials. The broader market conditions, however, might have contributed to the stock’s decline. Investors may find some reassurance in the company’s financial health and strategic initiatives.
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