Core Viewpoint - Jones Trading initiated coverage on MindMed (NASDAQ: MNMD) with a Buy rating and a $61 price target, highlighting the company's position in the expanding field of psychedelic-based neuropsychiatric treatments [1] Group 1: Company Positioning - MindMed is well positioned to benefit from favorable trends in the development of psychedelic agents for mental health [2] - Strong clinical data from earlier-stage trials is expected to lead to positive Phase III outcomes for MindMed's lead asset, MM120, in treating generalized anxiety disorder and major depressive disorder [2] Group 2: Clinical and Regulatory Considerations - There are unique clinical and regulatory risks associated with MM120 due to its relationship with LSD, which is classified as a Schedule I substance in the United States [3] - Compelling Phase III data could support eventual regulatory approval, and LSD's long history may enhance awareness and facilitate rapid commercial uptake if approved [3] Group 3: Market Performance and Opportunities - Despite a strong stock performance in 2025, with shares up approximately 69% year to date, the market is perceived to underestimate the long-term opportunity while overestimating clinical and regulatory hurdles [4]