- Dozens of biotech companies are developing psychedelics to treat illnesses like depression and PTSD.
- Cantor Fitzgerald analysts named six companies that could pop over the next year.
- They added that some of the compounds could “fuel the future in depression therapy.”
Psychedelics stocks — and the biotech sector as a whole — have tumbled over the past few months. For example, two top psychedelics companies, Compass Pathways and Cybin, have seen their market caps drop by 60% and 56%, respectively, since May 2021.
But Cantor Fitzgerald analysts said that the psychedelic compounds being developed by these upstarts still hold the potential to radically change the mental-health-treatment landscape.
“We see some of these compounds, notably psilo’, as spearheading a paradigm shift in the treatment of mental health indications,” they wrote in a May 24 note.
Over the past few years, companies have raised hundreds of millions of dollars to develop compounds such as MDMA and psilocybin to treat mental-health illnesses, including
depression
and PTSD. Unlike antidepressants, which are usually taken on a daily basis, these compounds have shown early promise in clinical trials to provide relief for patients through just one or a handful of sessions in conjunction with therapy.
The analysts predict that the six companies they list will increase at different rates. While Intra-Cellular Therapies’ stock could jump 27.9% from its current price, Compass’ stock could jump as high as 555%, the note said.
Here are the 6 specific stocks they listed that could perform well over the next year, all of which are listed on US exchanges:
- Atai Life Sciences (ATAI)
- Axsome Therapeutics (AXSM)
- Compass Pathways (CMPS)
- Cybin (CYBN)
- Intra-Cellular Therapeutics Inc. (ITCI)
- Seelos Therapeutics (SEEL)
Here are the price targets from the Cantor Fitzgerald analysts:
- ATAI (PT $22) / Current: $3.83 / 474% increase
- AXSM (PT $47) / Current: $25.17 / 86% increase
- CMPS (PT $58) / Current: $7.76 / 647% increase
- CYBN (PT $4) / Current: $0.61 / 555% increase
- ITCI (PT $72) / Current: $56.29 / 27.9% increase
- SEEL (PT $3) / Current: $0.59 / 408% increase
Read More: Top Wall Street analysts say psychedelics are poised to spark a ‘paradigm shift’ in