5 Most Promising Psychedelic Stocks According To Analysts

In this article, we discuss 5 most promising psychedelic stocks according to analysts. If you want to see more stocks in this selection, check out 10 Most Promising Psychedelic Stocks According To Analysts. 

5. Atai Life Sciences N.V. (NASDAQ:ATAI)

Number of Hedge Fund Holders: 15

Estimated 1-year Target Price: $13.72

Atai Life Sciences N.V. (NASDAQ:ATAI) was founded in 2018 and is headquartered in Berlin, Germany. It operates as a clinical-stage biopharmaceutical company that focuses on mental health disorders, such as treatment-resistant depression, schizophrenia, opioid use disorder, anxiety disorder, and mild traumatic brain injuries. It is one of the most promising psychedelic stocks according to Wall Street analysts. 

On January 19, H.C. Wainwright analyst Patrick Trucchio reiterated a Buy rating on Atai Life Sciences N.V. (NASDAQ:ATAI) but lowered the firm’s price target on the shares to $20 from $50. The analyst revised his assessment of the odds of success of PCN-101 to 5% from 80% due to the “disappointing” Phase 2a trial outcomes in patients with treatment-resistant depression. Nevertheless, he maintains his trust in several programs, such as VLS-01, RL-007, and GRX-917, all of which are in Phase 1 or 2 development, according to Trucchio’s communication with investors.

According to Insider Monkey’s Q4 data, 15 hedge funds were long Atai Life Sciences N.V. (NASDAQ:ATAI), compared to 19 funds in the last quarter. Cathie Wood’s ARK Investment Management is the biggest stakeholder of the company, with 5.6 million shares worth $15 million. 

4. Mind Medicine (MindMed) Inc. (NASDAQ:MNMD)

Number of Hedge Fund Holders: 6

Estimated 1-year Target Price: $23.63

Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) is a New York-based clinical stage biopharmaceutical company that develops novel products to treat brain health disorders related to psychiatry, addiction, pain, and neurology. It is one of the best psychedelic stocks to buy according to analysts. 

On December 15, EF Hutton analyst Elemer Piros initiated coverage of Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) with a Buy rating and a $21 price target. According to the analyst, MindMed has breathed new life into the clinical development of LSD, the oldest psychedelic substance in the Western world. The analyst also stated that MindMed has initiated the first efficacy trial using LSD for any indication, which is industry-sponsored and randomized, as well as highlighting the company’s financial position with cash reserves that can last for over two years.

According to Insider Monkey’s Q4 data, 6 hedge funds were long Mind Medicine (MindMed) Inc. (NASDAQ:MNMD), compared to 4 funds in the prior quarter. Anand Parekh’s Alyeska Investment Group is the largest stakeholder of the company, with 1.10 million shares worth $2.42 million. 

3. GH Research PLC (NASDAQ:GHRS)

Number of Hedge Fund Holders: 13

Estimated 1-year Target Price: $39.20

GH Research PLC (NASDAQ:GHRS) was incorporated in 2018 and is based in Dublin, Ireland. It is a clinical-stage biopharmaceutical company that focuses on developing therapies for the treatment of psychiatric and neurological disorders. It is one of the most promising psychedelic stocks according to analysts. 

On December 15, EF Hutton analyst Elemer Piros initiated coverage of GH Research PLC (NASDAQ:GHRS) with a Buy rating and a $33 price target. GH Research PLC (NASDAQ:GHRS) is focused on creating a potent psychoactive substance called 5-MeO-DMT, which has been recently rediscovered and could be used to treat mental health conditions that are difficult to address. According to the analyst’s research note, GH Research PLC (NASDAQ:GHRS) has a strong financial position with over $250 million in cash, making it one of the most well-funded companies in the psychedelic industry.

According to Insider Monkey’s fourth quarter database, 13 hedge funds were long GH Research PLC (NASDAQ:GHRS), compared to 14 funds in the prior quarter.

2. COMPASS Pathways plc (NASDAQ:CMPS)

Number of Hedge Fund Holders: 10

Estimated 1-year Target Price: $44.64

COMPASS Pathways plc (NASDAQ:CMPS) is a London-based mental health care company operating in the United Kingdom and the United States. It develops therapies for the treatment of treatment-resistant depression and post-traumatic stress disorder. It is one of the most promising psychedelic stocks to monitor. 

On December 15, EF Hutton analyst Elemer Piros initiated coverage of COMPASS Pathways plc (NASDAQ:CMPS) with a Buy rating and a $38 price target. According to the analyst’s research note, COMPASS Pathways plc (NASDAQ:CMPS) is expected to be the first company to use a psychedelic drug to treat refractory depression. The analyst believes that the company is well-positioned to introduce psilocybin to the global market for treating depression that is resistant to conventional treatments, through clinical trials that meet regulatory standards.

According to Insider Monkey’s Q4 data, 10 hedge funds were bullish on COMPASS Pathways plc (NASDAQ:CMPS), compared to 15 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the largest stakeholder of the company, with 1.2 million shares worth nearly $10 million. 

1. Mydecine Innovations Group Inc. (OTC:MYCOF)

Number of Hedge Fund Holders: N/A

Estimated 1-year Target Price: $140.00

Mydecine Innovations Group Inc. (OTC:MYCOF) was incorporated in 2013 and is headquartered in Vancouver, Canada. It is a biotech and life sciences company that engages in the development and commercialization of drugs for treating mental health problems. The company also provides psychedelic integration services, including psychedelic aftercare and wellness services. On December 12, Mydecine Innovations Group Inc. (OTC:MYCOF) completed the sale of its wholly-owned subsidiary, Mindleap Health, to PanGenomic Health. As per the announcement, PanGenomic acquired all the outstanding shares of Mindleap Health by issuing units of PanGenomic at a price of C$0.20 per unit. The purchase price for all of Mindleap Health’s shares was C$3.6 million.

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