JonesTrading analyst Soumit Roy maintained a Buy rating on CervoMed today and set a price target of $20.00.
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Soumit Roy has given his Buy rating due to a combination of factors surrounding CervoMed’s promising position in the treatment of dementia with Lewy bodies (DLB). The company is poised to be a first mover in this market with its drug, neflamapimod, which is ready for Phase 3 trials following alignment with the FDA. The Phase 2b data has been encouraging, showing significant clinical benefits in a specific patient group, which enhances the potential success of the upcoming Phase 3 trial.
Moreover, the high unmet need for DLB treatments and the potential market size of approximately $3-4 billion across major regions highlight the opportunity for CervoMed. The FDA’s requirement for only a single Phase 3 trial underscores the urgency and potential impact of this treatment. With a clear path forward and a favorable valuation, Soumit Roy believes now is an opportune time to invest in CervoMed, reiterating a Buy rating and a price target of $20.
Roy covers the Healthcare sector, focusing on stocks such as Protara Therapeutics, CervoMed, and Cullinan Management. According to TipRanks, Roy has an average return of -16.8% and a 24.36% success rate on recommended stocks.
In another report released on November 11, Canaccord Genuity also reiterated a Buy rating on the stock with a $27.00 price target.