Jefferies has initiated coverage of Helus Pharma (NASDAQ: HELP) with a Buy rating and a $22.00 price target, a note the firm released on Monday. At the time of the announcement the stock was trading at $6.62, leaving the brokerages target implying roughly 232% upside from the prevailing market price.
The research team centered its thesis on three potential 2026 catalysts that, in its view, could produce significant revaluation moves for the clinical-stage pharmaceutical company. Jefferies singled out the companys lead asset, HLP003, an oral d-psilocin candidate, as the primary binary event. The firm assigned the pivotal Phase III trial for adjunct major depressive disorder (MDD) better than a 60% probability of success and indicated that positive results could move the share price in the range of 100% to 200%.
Jefferies noted the broader leverage embedded in Heluss current market capitalization, which it estimated at $330 million. The implication in the note is that a favorable pivotal outcome for HLP003 would meaningfully shift the companys valuation given the assets centrality to the programmatic pipeline.
Beyond HLP003, the broker called out HLP004, an intramuscular d-DMT described as a short-duration psychedelic therapy. Jefferies said the program has de-risking Phase II data expected in the first quarter of 2026 for generalized anxiety disorder (GAD). The note characterized HLP004 as a "$1B+ call option" for Helus, highlighting the upside potential the firm attributes to that program if the forthcoming data prove favorable.
Jefferies also listed the appointment of a permanent, experienced chief executive officer as a separate catalyst that could affect perception and valuation. The research note treated leadership clarity as a material corporate-development milestone alongside the clinical readouts.
The Jefferies initiation comes against a backdrop of challenging recent price performance for Helus shares. The stock was down approximately 19% year-to-date and about 33% over the past 12 months according to the figures cited in the research note.
Context for investors
The brokerages Buy rating and $22 target rest on three discrete 2026 events: the Phase III HLP003 pivotal readout for adjunct MDD with greater than 60% probability of success and an estimated potential to push the stock 100% to 200%; de-risking Phase II data for HLP004 in Q1 2026 for GAD described as a "$1B+ call option"; and the potential appointment of a permanent, experienced CEO. Jefferiess note emphasizes these catalysts in framing the upside opportunity despite the companys recent negative share performance.