Jones Trading initiated coverage on MindMed (NASDAQ: MNMD) with a Buy rating and a $61 price target, pointing to the company's positioning within the growing field of psychedelic-based neuropsychiatric treatments.

The analyst said MindMed was well positioned to benefit from favorable trends supporting the development of psychedelic agents in mental health. Jones Trading expected that strong clinical data from earlier-stage trials would translate into positive Phase III outcomes for MindMed's lead asset, MM120, in generalized anxiety disorder and major depressive disorder.

While acknowledging unique clinical and regulatory risks due to MM120's relationship to LSD, which remains a Schedule I substance in the United States, the firm said compelling Phase III data could support eventual regulatory approval. The analyst also noted that LSD's long history could increase awareness and contribute to rapid commercial uptake if approved.

Despite MindMed's strong stock performance in 2025, with shares up roughly 69% year to date, Jones Trading argued that the market continued to underestimate the size of the long-term opportunity while overstating the potential hurdles related to clinical and regulatory risks.