Neumora Therapeutics' (NMRA) readout of its first phase 3 trial of navacaprant in major depressive disorder was a "significant miss," but the company still has two more chances to go, Mizuho Securities said in a note Friday.

Two phase 3 trials are still ongoing, with topline data readouts from both studies slated for H1, Mizuho analyst Graig Suvannavejh said, adding the company can make adjustments to these two studies given the negative results from the first trial although timelines might be affected.

The company is expected to provide a navacaprant program update in the next few weeks and Mizuho said it will wait for that update before revisiting its estimates and views on the company.

"With [Neumora] now trading at negative enterprise value, but having a cash runway to mid-2026 and other pipeline programs, the shares look oversold," according to the note.

Mizuho has an outperform rating on Neumora and $20 price target.

Neumora shares were rising more than 18% in recent trading.

Price: 2.33, Change: +0.36, Percent Change: +18.27