Dawson James starts MYnd Analytics at buy; PT $4

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Dawson James Securities initiated coverage of MYnd Analytics (NASDAQ:MYND) with a “buy” rating and price target of $4. The stock closed at $1.32 on April 11.

Analyst Jason Kolbert writes that MYnd is working to bring behavioral health into the digital age. Two key initiatives: PEER Reports, which uses A.I. to interpret a patient’s brain waves, can provide insights into medications a patient may respond to, coupled with tele-behavioral health, which improves access and lowers cost, “both hold great promise to advance the treatment of mental disease.”

MYnd is set to merge with sickle cell company, Emmaus Life Sciences, and then be spun back out into a new public company. Along the way, shareholders of MYnd will pick up ownership of approximately 5.9% in Emmaus and emerge with a new company and a clean capital structure, he said.

Mr. Kolbert said it’s hard to say precisely what the value of the Emmaus piece will be worth. “But given the fact that Emmaus is launching Endari, the first new drug in the sickle cell space in 30 years, we believe the potential value of Emmaus could be large, approaching $1-billion.

Given the market capitalization of MYnd of $12-million, “we see the opportunity to buy the stock now, into the proposed transaction, as upside to shareholders.”

Stephen Kilmer