Neumora weakness amid lock-up expiration a buying opportunity, says RBC Capital

RBC Capital analyst Brian Abrahams notes Neumora Therapeutics shares are down substantially this morning and while the firm has not found any fundamental reasons for today’s weakness, it also notes that today is the expiration of lock-up agreements in connection with the company’s September 2023 IPO. The firm, which remains bullish on the prospects of the company’s lead drug navacaprant, would view any weakness as a buying opportunity and believes today’s weakness provides an “even more compelling entry point” into potential de-risking catalysts coming the second half of the year given the promise of lead drug navacaprant in major depressive disorder, or MDD, and the rest of the company’s pipeline. RBC has an Outperform rating and $31 price target on the shares.