Buy this ‘game-changer’ biotech stock with more than 50% upside, BofA says

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Neumora Therapeutics could transform the current neuroscience treatment landscape, according to Bank of America. The firm initiated coverage of the biotech company on Tuesday with a buy rating. Analyst Geoff Meacham’s $18 price objective implies a potential upside of 51% from the stock’s $11.94 closing price on Monday. Meacham cited the firm’s strong pipeline of novel drugs and treatments as a catalyst. Specifically, Neumora’s navacaprant drug could be a “game-changer for major depressive disorder,” Meacham said. “Several of these drugs, including navacaprant for major depressive disorder (MDD)/bipolar depression, and NMRA-266 for schizophrenia, have been clinically validated and/or have a strong scientific rationale,” the analyst wrote. “Overall, the diverse pipeline and targets provide multiple opportunities for Neumora to potentially become one of the largest neuro-focused biotech companies.” While the company is currently unprofitable, Meacham expects this to change in 2027, or one year after the company officially commercializes navacrapant for major depressive disorders. The analyst sees commercialization of navacrapant for bipolar depression in 2028. Despite the bullish call, the stock was down nearly 8%. Shares of Neumora are down more than 30% since its IPO on Sept. 15. — CNBC’s Michael Bloom contributed to this report.