Analyst Michael Okunewitch of Maxim Group maintained a Buy rating on ATAI Life Sciences (ATAI – Research Report), retaining the price target of $6.00.
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Michael Okunewitch has given his Buy rating due to a combination of factors surrounding ATAI Life Sciences’ financial health and promising pipeline. The company reported a net loss but maintains a strong cash position, with $108 million in cash and equivalents, which is expected to fund operations into 2027. Additionally, ATAI has repaid all outstanding debt, further solidifying its financial stability.
ATAI’s upcoming catalysts also play a significant role in the Buy rating. The company is set to release Phase 2b data for its partnered BPL-003 program in treatment-resistant depression and its RL-007 program for cognitive impairment associated with schizophrenia by mid-2025. These programs, along with internal initiatives like VLS-01 and EMP-01, highlight ATAI’s robust pipeline focused on short-acting psychedelics, which could leverage existing infrastructure for ketamine-assisted therapy. The strategic positioning and potential market impact of these programs contribute to the positive outlook for ATAI Life Sciences.
Okunewitch covers the Healthcare sector, focusing on stocks such as Ocugen, Lineage Therap, and Longeveron. According to TipRanks, Okunewitch has an average return of -23.3% and a 26.18% success rate on recommended stocks.
In another report released on May 1, H.C. Wainwright also reiterated a Buy rating on the stock with a $10.00 price target.