Stock of depression drugmaker Neuronetics adds 25% after BTIG initiation at 'buy'

Shares of Neuronetics, a small-cap developer of depression treatments and operator of medical centers, surged 25% on Monday to $2 per share, a more than two-month high. The rally began after BTIG initiated coverage of Neuronetics with a “buy” rating at a target price of $5 per share, for upside of 150%. In trading on Tuesday, the shares were down around 1% as of this writing.

Neuronetics originally manufactured medical equipment used to treat major depressive disorder and other neurohealth conditions in patients who have not responded to medication. Following its acquisition of the Greenbrook TMS network of medical centers in December 2024, the company transformed into a vertically integrated mental-health platform with 93 clinics, BTIG analyst Sam Eiber wrote, according to Investing.com.

The deal drove impressive revenue growth at Neuronetics. Revenue nearly doubled in 2025 to $149.2 million and rose 8% year over year in the first quarter of 2026 to $34.5 million. At the same time, Eiber called attention to the company’s total debt of $85.4 million versus a market capitalization of $140.6 million.

Neuronetics has a collaboration agreement with biotech Compass Pathways for the development of COMP360, a psychedelic therapy for treatment-resistant depression. The drug has completed phase III clinical trials but has yet to receive regulatory clearance. If approved, it would become the first treatment of its class authorized in the U.S. and give Neuronetics “an exciting potential path to offer another differentiated treatment across our national clinic network,” the company’s chief medical officer, Geoffrey Grammer, has stated.

Wall Street has four ratings on the stock, all of them “buy.” The average target price is $4.50 per share, implying 125% upside from the latest closing price. Neuronetics shares have advanced more than 46% year to date, while the smid-cap benchmark Russell 2000 index has gained around 19%.