Analyst Soumit Roy from JonesTrading maintained a Buy rating on CervoMed and keeping the price target at $20.00.
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Soumit Roy has given his Buy rating due to a combination of factors that highlight CervoMed’s promising developments and financial stability. The company is expected to engage with the FDA to finalize the trial design for a Phase 3 study of neflamapimod in Dementia with Lewy Bodies (DLB) by the fourth quarter of 2025. Additionally, CervoMed plans to release initial safety and biomarker data from an ongoing Phase 2 trial during the same period, which could further validate the efficacy of their treatment.
Furthermore, recent data from a 32-week extension phase of a Phase 2b study showed a significant reduction in disease progression risk with the new neflamapimod capsules. Financially, CervoMed is well-positioned with approximately $33.5 million in cash and equivalents, providing a cash runway into the third quarter of 2026. The valuation, based on a mix of discounted cash flow, net present value, and price-to-earnings models, supports a price target of $20, indicating substantial potential upside.
In another report released on August 12, Roth MKM also maintained a Buy rating on the stock with a $16.00 price target.