Summary

  • Neumora Therapeutics received a ‘buy’ rating from brokers shortly after its recent listing on the stock market.
  • Brokers J.P. Morgan, RBC and William Blair gave the stock a ‘buy’ rating based on positive prospects surrounding its Navacaprant drug.
  • The consensus mean price target on NMRA stands at US$22.20, an upside potential of 120% over Wednesday’s closing price.

Biopharmaceutical firm Neumora Therapeutics (NASDAQ: NMRA) received a ‘buy’ rating from brokers shortly after its recent listing on the stock market. The stock debuted on the market last month and its price has declined by 28.5% since then.

Neumora develops therapeutic treatments for brain diseases, neuropsychiatric disorders and neurodegenerative diseases. Brokers are positive on Neumora’s lead product Navacaprant, its new, daily administered oral medication that acts as an antagonist for the kappa opioid receptor.

EODHD/Others data suggests that the consensus mean price target on NMRA is US$22.20, an upside potential of a whopping 120% over Wednesday’s closing price.

NMRA Price Chart; Source: EODHD/Others

NMRA closed at US$10.08 on Wednesday, ending trade around 10% lower on the day.

NMRA’s lead product in late-stage trials

Navacaprant, Neumora’s lead product, is currently undergoing advanced testing as a potential standalone treatment for major depressive disorder in its final stages of evaluation.

Broker J.P. Morgan stated that it is positive on Navacaprant’s ability to work. The broker also mentioned that the drug's way of working seems to be distinct compared to the current conventional antidepressants used in the treatment of MMD.

J.P. Morgan gave NMRA an ‘overweight’ rating with a price target of US$21, an upside potential of 108% over Wednesday’s closing price. Meanwhile, broker RBC gave NMRA an ‘outperform’ rating and gave it a price target of US$24.

Image Source: ©2023 Kalkine®; Data Source: EODHD/Others

RBC also stated that the drug’s clean safety profile could potentially offer key differentiation in a large MDD market. As per the broker, Navacaprant has a U.S. MDD sales potential of US$2 billion.

Commenting on the high prevalence of MDD, broker William Blair stated that even single-digit penetration could bring forth multibillion-dollar annual revenue. William Blair gave NMRA an ‘outperform’ rating and a price target of US$26.

NMRA’S financials for the year 2022

For the year ended December 31, 2022, Neumora reported a net loss of US$130.9 million, a decrease from 2021’s net loss of US$237.3 million. Meanwhile, the company’s comprehensive loss stood at US$131.67 million in 2022.

Cash and cash equivalents of the company as of June 30,2023 were US$334.089 million. The total assets for the period stood at US$359.95 million.

As per EODHD/Others data, NMRA has an overall mean recommendation rating of 1.3 on five. Here, one indicates a ‘strong buy’ rating, while five stands for a ‘strong sell' rating.

A total of six analysts have covered NMRA, of which four have given it a ‘strong buy’ rating and two believe it is a ‘buy’.