B.Riley analyst Madison El-Saadi initiates coverage on Neuronetics (NASDAQ: STIM) with a Buy rating and a price target of $5.00.

The analyst comments: “We are initiating coverage of Neuronetics, Inc. (STIM) with a Buy rating and $5 price target (~70% upside), following the late-2024 Greenbrook acquisition and management reset in 2026. We believe Greenbrook’s revenue growth and operating leverage may translate disproportionately into earnings, thereby supporting a revaluation of STIM from a levered TMS device company to a scaled interventional psychiatry platform. Importantly, Greenbrook provides organic mid teens growth and substantial unused capacity while also positioning STIM to benefit from a psychedelic-driven shift in interventional psychiatry. This transformation coincides with accelerating commercial adoption, payer acceptance, and specialist training, driving a new wave of interventional psychiatry. Covenant resolution and sustained positive adjusted EBITDA should support a higher multiple for the dual-device/services platform; STIM trades at ~1.5x FY28E EV/sales versus ~2.4x for blended peers. Our $5 price target reflects normalization toward that benchmark, with minimal contribution from psychedelics, where potential COMP360 approval in 1H27E and a string of subsequent approvals across the category could justify a premium multiple.”

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Shares of Neuronetics closed at $3.01 yesterday.