Neuronetics Shares Rise After B.Riley Initiates Coverage With Buy Rating

Neuronetics (STIM) shares rose after B.Riley initiated coverage with a Buy rating and a $5.00 price target. The outlook reflects the company's transition from a specialized device manufacturer to an interventional psychiatry platform following its acquisition of Greenbrook.

"The firm believes 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," said Madison El-Saadi, analyst at B.Riley, in a note to investors.

Market Position and Valuation

As of September 14, 2026, Neuronetics shares were trading at $3.01. The $5.00 price target set by B.Riley implies an approximate 70% upside from this valuation.

Strategic Shift in Psychiatry

Neuronetics, best known for its NeuroStar Advanced Therapy system for Transcranial Magnetic Stimulation (TMS), has historically operated as a medical device provider. The integration of Greenbrook TMS, which operates a network of outpatient mental health clinics, represents a pivot toward a service-oriented model.

By combining its proprietary hardware with a direct-to-patient clinical delivery network, the company aims to capture revenue across the stack of interventional psychiatric care. This structural change is intended to move the company away from the cyclical nature of medical device capital sales toward a recurring revenue profile driven by clinical services and patient throughput.

What Is at Stake

For investors and stakeholders, the core question is whether the operational synergies from the Greenbrook acquisition can offset the integration costs and historical debt levels associated with the company's expansion. The B.Riley analysis suggests that the market has yet to fully price in the potential for improved operating leverage that comes with a vertically integrated model in the mental health sector.