How Analysts Are Asleep At The Wheel Regarding Psychedelic Stocks

That coverage helped to catapult Field Trip from a 2-month low of CAD$3.55 to as high as CAD$9.89, despite the general weakness in psychedelic stocks.

Cybin didn’t move much off of this initial coverage. However, on March 15th, Canaccord Genuity initiated coverage of Cybin. It gave CYBN a buy rating and a CAD$8 price target.

Cybin immediately bounced over 30% from its 4-month low of CAD$1.36, before giving back some of those gains in the general selloff in tech stocks in recent sessions.

But where are the rest of these analysts, and coverage of more of the well-capitalized/undervalued companies in this sector?

Huge opportunity in psychedelics, dramatically undervalued stocks

With public companies in this space barely a year old, the industry has been raising an average of US$100 million per month in new capital for the past six months. That’s a very strong endorsement of this sector from the Smart Money.

A number of the biggest names from Silicon Valley and Wall Street are outspoken bulls for these stocks. As The Wall Street Journal reported last August: Silicon Valley and Wall Street Elites Pour Money Into Psychedelic Research

That’s another strong endorsement from the Smart Money.

After being in artificial hibernation for 50 years (due to the War on Drugs), psychedelic drugs are now a brand-new industry – and (by far) the single largest new opportunity in life sciences today. See: The 8 Best Reasons To Invest In Psychedelic Stocks

Yet most market analysts remain asleep-at-the-wheel with respect to this opportunity.

Sooner or later, more analysts will do their homework and climb on board the psychedelics bandwagon. In the meantime, these stocks continue to fly under the radar of most investors – presenting early investors to this space with fantastic bargains.

Industry leader, MindMed is currently trading at CAD$3.42, little more than half of its 52-week high. Numinus, which recently announced a CAD$30 million bought deal is trading at CAD$1.15, less than half of its 52-week high.

Even after its recent move higher, Cybin is only trading at roughly three times cash. Mind Cure Health (CAN: MCUR / US: MCURF) is trading at less than two times cash.

Wake up, analysts!

 

 

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Disclosure: The writer holds shares in MindMed Inc, Numinus Wellness, Cybin Inc, and Mind Cure Health. Mind Cure Health is a client of Psychedelic Stock Watch.

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