GH Research initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of GH Research (GHRS) with an Outperform rating and $31 price target The firm says the “dramatic” antidepressive effects observed in the Phase IIb study of GH001, the company’s psychedelic with “many favorable properties” facilitating administration and delivery, should be replicable in Phase III and position the drug as a treatment of choice in the future paradigm. With the stock off its post-data highs, RBC sees a “compelling entry point.” While the stock’s major near-term catalysts may be more limited, there should be appreciation as GH’s development progress ensues and enthusiasm for psychedelics continues to build, contends the firm.