Canaccord Genuity analyst Sumant Kulkarni reiterated a Buy rating on ATAI Life Sciences today and set a price target of $11.00.
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Sumant Kulkarni’s rating is based on a combination of factors that highlight ATAI Life Sciences’ potential despite recent setbacks. The company’s strategic decision to focus on its wholly-owned pipeline, particularly the promising BPL-003 for treatment-resistant depression, positions it well for future growth. The recent failure of Recognify’s RL-007 in a Phase 2b trial for cognitive impairment associated with schizophrenia was not unexpected and does not significantly impact ATAI’s valuation.
Despite a temporary dip in stock value, Kulkarni sees this as an opportunity to invest before additional data from BPL-003 is released. The upcoming data and events, along with ATAI’s streamlined focus on psychedelics, suggest that the stock is undervalued. Kulkarni has adjusted the price target slightly from $12 to $11, reflecting the removal of RL-007 from the model, but maintains a positive outlook on the company’s future prospects.