Cybin: Canaccord Bumps Price Target To US$7.00
Cybin Inc (NEO: CYBN) last month had a long month of news reports, the first being that they received conditional approval to list on the New York Stock Exchange, keeping the same ticker “CYBN”. Then a week later, the company announced the size of their overnight marketed public offering of $30 million, which consists of 8.82 million shares at a price of $3.40.
Cybin only has 6 analysts covering the stock with an average 12-month price target of $10, or a 250% upside. The street high sits at $15 from Stifel-GMP while the lowest comes in at $8. Out of the 6 analysts, 1 has a strong buy rating and the other 5 have buy ratings.
Last week, Canaccord raised their 12-month price target on Cybin to U$7 from U$6 and reiterated their buy rating, saying “with catalysts coming, newly NYSE-listed CYBN remains undervalued.” They believe now that the company is cashed up after the $30 million raised, the money will obviously help carry out the companies lead candidate trial of CYB001.
CYB001 is a sublingual form of psilocybin for major depressive disorder. This candidate will be entering a Phase 2a trial in Jamaica, which data from the study could be available by the end of the year. That means the company could be ready to start Phase 2b trials in early 2022.
Canaccord raised their price target as they adjusted their operating expense estimates and removed the raise overhang that they believed would be happening in late February 2022, although they still expect additional raises in fiscal 2023 and 2024.
Canaccord assumes that the drug will be offered to 1-2 million patients in the US and that the starting price would be $20,000 for two treatments per year, which is expected to start in fiscal 2026.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
