Canaccord Genuity analyst Sumant Kulkarni maintained a Buy rating on ATAI Life Sciences (ATAI – Research Report) yesterday and set a price target of $11.00.
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Sumant Kulkarni has given his Buy rating due to a combination of factors surrounding ATAI Life Sciences. One of the primary reasons is the strategic acquisition of Beckley, which is expected to enhance ATAI’s pipeline, particularly with the promising BPL-003 compound for treatment-resistant depression. This acquisition, valued at $390 million, positions ATAI favorably as it anticipates positive Phase 2b data for BPL-003, which could significantly boost the company’s prospects.
Additionally, the upcoming Phase 2b data for RL-007 for cognitive impairment associated with schizophrenia presents another potential upside. Despite the challenges in this indication, a positive outcome could surprise the market and further enhance ATAI’s valuation. Overall, Kulkarni views ATAI as undervalued, especially given its focus on mental health, which offers substantial growth opportunities. Thus, the strategic moves and potential data readouts contribute to the Buy rating.
Kulkarni covers the Healthcare sector, focusing on stocks such as CervoMed, ACADIA Pharmaceuticals, and Neurocrine. According to TipRanks, Kulkarni has an average return of 1.8% and a 41.30% success rate on recommended stocks.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $10.00 price target.
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