RBC Sees Upside Potential in Neumora Therapeutics (NMRA)

Neumora Therapeutics, Inc. (NASDAQ:NMRA) is one of the 10 Best New Penny Stocks to Invest In. On December 1, RBC Capital upgraded its rating on Neumora Therapeutics, Inc. (NASDAQ:NMRA) from Sector Perform to Outperform and increased its price target from $4 to $7.

This increase in price target reflects the firm’s view that Neumora Therapeutics, Inc. (NASDAQ:NMRA) is expanding its focus beyond neurology. According to RBC Capital, this shift is not fully reflected in the company’s current valuation.

RBC Capital highlighted the company’s early-stage asset in the NLRP3 class as a key strength. The firm noted that this asset is positioned competitively and has shown promise across multiple large-market indications. These include areas such as obesity and cardiometabolic disease, which could significantly increase Neumora Therapeutics, Inc.’s (NASDAQ:NMRA) long-term opportunity.

Additionally, the firm believes that the data that is expected in 2026 could help better define the potential and may have a meaningful positive impact on Neumora Therapeutics, Inc.’s (NASDAQ:NMRA) valuation.

At the same time, RBC Capital is staying cautious about the company’s later-stage neurology programs, including KOR, V1a, and M4. However, the firm noted that the current valuation appears to reflect very limited expectations for these programs. This suggests that any positive outcomes could provide upside potential.

Neumora Therapeutics, Inc. (NASDAQ:NMRA) is a clinical-stage biopharmaceutical company focused on developing treatments for brain diseases.

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Disclosure: None. This article is originally published at Insider Monkey.