Deutsche Bank has initiated coverage on AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) assigning a 'Buy' rating and setting a price target of $12, implying potential upside of around 320% from current levels.
In a note to clients, analysts highlighted the company’s position in the emerging field of psychedelic medicine for mental health.
“Recently, several psychedelic companies have emerged as bona fide drug developers, attracting attention from healthcare and biotech investors who usually invest in conventional therapeutics,” they wrote. “We count ATAI among these trailblazers and believe it will become a leader in the nascent field of psychedelic medicine for mental health conditions.”
The firm cited AtaiBeckley’s lead programs, BPL-003 and VLS-01, which are being developed for treatment-resistant depression, an area with high unmet need.
The analysts noted that “with rapid-acting and potentially durable effects, BPL-003, followed by VLS-01, can leverage the existing Spravato commercial model in treatment-resistant depression, while displacing both market leader Spravato and first-generation, long-acting psychedelics.”
Deutsche Bank also noted that AtaiBeckley’s third program, EMP-01 for seasonal affective disorder, describing it as “akin to a call option.” The analysts wrote that their risk-adjusted discounted cash flow model suggests the shares are “materially undervalued, with approximately 3.5x upside versus approximately 70% downside in our base-case valuation.”
Phase 2 data for VLS-01 and Phase 2a Part 4 data for BPL-003, intended as an adjunct to SSRIs, are expected in the second half of 2026 and fourth quarter 2026, respectively, which Deutsche Bank noted could provide near-term catalysts for the stock.