Wainwright maintains $18 target on Neumora Therapeutics stock

Published 29/04/2025, 13:26
Wainwright maintains $18 target on Neumora Therapeutics stock

On Tuesday, H.C. Wainwright reaffirmed its confidence in Neumora Therapeutics (NASDAQ:NMRA), maintaining a Buy rating and an $18.00 price target for the company’s shares. According to InvestingPro data, this target represents significant upside potential from the current price of $0.76, though the stock has experienced a challenging year with a 92% decline. The endorsement follows a recent event in the firm’s "Emerging Ideas In Biopharma" call series, which featured discussions with Dr. Josh Pinto, CEO, and Dr. Bill Aurora, Chief Operating and Development Officer of Neumora Therapeutics, Inc.

During the call, the executives outlined several operational adjustments aimed at enhancing the success prospects for the company’s KOASTAL-2 and -3 studies. The adjustments are part of Neumora’s strategy to improve its position in the biopharmaceutical industry. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt, though it’s currently burning through cash rapidly. Get detailed insights and 12 additional ProTips with an InvestingPro subscription.

H.C. Wainwright’s analyst highlighted Neumora’s diversified portfolio, noting that while the market has shown considerable skepticism towards navacaprant, an asset within Neumora’s pipeline, the firm sees potential beyond this single product. The analyst emphasized that Neumora’s V1aR antagonist and M4 programs hold the potential to significantly benefit shareholders.

The analyst’s commentary suggests that Neumora Therapeutics is not solely reliant on navacaprant for its future growth. Despite navacaprant being identified as a near-term key value driver for the company, the analyst believes that the breadth of Neumora’s pipeline could contribute to the company’s market valuation. Recent InvestingPro data shows the company’s market cap stands at $123 million, with three analysts recently revising their earnings estimates upward for the upcoming period. Discover comprehensive analysis and Fair Value estimates in the Pro Research Report, available exclusively to InvestingPro subscribers.

H.C. Wainwright’s reiterated rating and price target reflect a positive outlook on Neumora Therapeutics’ strategic initiatives and its portfolio of innovative pipeline assets. The firm invites interested parties to listen to a replay of the call to understand the full scope of the discussion and the rationale behind the maintained Buy rating and price target.

In other recent news, Neumora Therapeutics has faced a series of analyst downgrades and adjustments following developments in its clinical trials and industry landscape. BofA Securities downgraded Neumora from Buy to Underperform, slashing the price target from $7.00 to $1.00, citing uncertainties in the effectiveness of revised trial protocols for its major depressive disorder (MDD) treatment. William Blair also downgraded Neumora to Market Perform due to the discontinuation of Johnson & Johnson’s aticaprant program, impacting confidence in the kappa opioid receptor antagonist mechanism shared by Neumora’s navacaprant. Stifel followed suit, downgrading the stock to Hold with a reduced price target of $2.00, reflecting tempered expectations for navacaprant after Johnson & Johnson’s program halt.

Despite these downgrades, H.C. Wainwright reaffirmed its Buy rating and $18.00 price target, maintaining a positive outlook on Neumora’s differentiated pharmacology. Guggenheim also reiterated a Buy rating with a $7.00 target, emphasizing the company’s plans to resume its KOASTAL-2 and -3 studies in March 2025 after a temporary pause. Neumora has announced updates on its pipeline, including plans to advance its M4 PAM program into clinical trials by mid-2025. The company also anticipates releasing topline data from its KOASTAL-3 and KOASTAL-2 studies in 2026. Additionally, Neumora plans to release data from a Phase Ib study for NMRA-511, targeting agitation in Alzheimer’s disease, by the end of 2025.

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

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