A handful of psychedelic stocks can rally after President Donald Trump ‘s executive order on the use of the this type of drug for treating mental illness, according to Oppenheimer. The White House on Saturday ordered the Food and Drug Administration to provide priority vouchers for certain drugs with breakthrough therapy designations. The order also called on the Drug Enforcement Agency to create a system for allowing patients to access investigational psychedelic drugs under regulatory review. The order “represents a structural inflection for the [U.S.] psychedelics sector by facilitating research, regulatory timelines, and patient access, which reinforces our positive outlook,” Oppenheimer analyst Jay Olson wrote in a weekend note to clients. Trump pointed specifically to the mental health crisis among veterans in the order, which asks the Department of Veterans Affairs to help push for increased clinical trial participation. Olson said the order should accelerate the timeline for regulatory approval on these drugs and expand opportunity for pre-approval access. Federal funding expectations included in the release should also help mitigate research barriers and lead to scaled clinical trials, the analyst said. “We view these actions as collectively signaling political validation, reduced development risk, and faster commercialization pathways while also driving payor engagement,” Olson wrote. How to play Olson said AtaiBeckley , Compass Pathways and Definium Therapeutics have “differentiated advantages” as the sector sees better investor sentiment. Compass shares surged more than 35% in Monday’s session, on track for its best day on record. AtaiBeckley shares climbed more than 25%, which would mark its biggest one-day gain since 2024. Definium shares ticked up more than 1%. CMPS ATAI,DFTX 1D mountain Psychadelic stocks, 1-day The average analyst has a buy rating on each stock, according to LSEG. Analysts have average price targets implying upside of about 169% and 134% for AtaiBeckley and Compass, respectively. Meanwhile, the typical price target suggests Definium shares can rise more than 59% over the next year.
