Cantor Fitzgerald has reaffirmed its Overweight rating on Definium Therapeutics Inc (NASDAQ:DFTX), a stock trading at $16.88 and positioned close to its 52-week high of $18.12. The research house implemented several changes to its valuation framework that collectively raised the companys calculated net present value.
Among the specific model revisions, Cantor Fitzgerald altered its penetration rate assumptions for two psychiatric indications - Generalized Anxiety Disorder (GAD) and Major Depressive Disorder (MDD). Alongside these disease-penetration adjustments, the firm reduced the discount rate applied in its valuation from 18% to 12%.
The analyst team also updated operating expense projections to reflect managements expectation that a fourth Phase 3 trial will begin in mid-2026. Those operating-expense updates, together with the other input changes, led Cantor Fitzgerald to lower its earnings-per-share estimates for 2025 and 2026.
Despite the downward revisions to short-term EPS, the combined effect of the new assumptions produced a sizable increase in Cantor Fitzgeralds net present value for Definium, which is now calculated at roughly $3.9 billion versus the prior estimate of $1.9 billion.
Separately, market watchers have noted additional developments at Definium that have been highlighted by other sell-side firms and the company itself. RBC Capital has raised its price target for Definium to $36 from $20 while maintaining an Outperform rating, a change the firm attributes to conversations with the companys management and takeaways from its Psychedelics Symposium. Jefferies started coverage with a Buy rating and set a $30 price target, pointing to a potential market opportunity in excess of $1 billion for Definiums DT120 dissolving LSD tablet.
Corporate governance and outreach moves were also announced. Definium expanded its board to seven members with the appointment of Roger Adsett, who is currently Chief Operating Officer at Insmed. Adsett will receive annual compensation plus stock options for his board role. The company has additionally launched an educational campaign called "Rerouting Minds," which focuses on the role of LSD in treating mental health disorders and is aimed at healthcare providers and policymakers.
Taken together, the analyst-model changes and the flurry of broker coverage and corporate activity provide investors with updated valuation context and signals on strategy and potential market opportunity, while also introducing near-term earnings uncertainty tied to trial timing and expense assumptions.
Market reaction - The reiteration of an Overweight rating and the marked lift in Cantor Fitzgeralds NPV are notable inputs for investors assessing Definiums valuation. At the same time, the companys upcoming Phase 3 timing and the lowered EPS projections for 2025 and 2026 point to an episodic earnings profile in the near term.
What to watch next - Investors will likely monitor progress toward the anticipated mid-2026 start of the fourth Phase 3 trial, any further updates to operating spending, and additional commentary from brokers that are updating coverage or price targets.