Promising Outlook for Longeveron: ELPIS II Trial Progress and Financial Strength Highlighted

Longeveron (LGVN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $10.00 price target.

Ram Selvaraju’s rating is based on the promising progress of Longeveron’s ELPIS II trial for Lomecel-B in treating hypoplastic left heart syndrome (HLHS). The trial is nearing full enrollment and is expected to provide pivotal results by next summer, which could lead to a Biological License Application (BLA) submission if the outcomes are positive. The trial’s significance is underscored by its collaboration with the National Heart, Lung, and Blood Institute and its designations like Orphan Drug and Fast Track, which may expedite regulatory review.
Financially, Longeveron ended 2024 with a solid cash position, expected to support operations into late 2025, and reported revenues exceeding forecasts due to increased demand in their trials. The company’s valuation, based on a discounted cash flow model, suggests a firm value of $240M, with a projected price target of $10 per share. The analyst assigns a 60% probability of approval for Lomecel-B in HLHS, highlighting the potential for significant upside if successful, despite acknowledging risks such as trial failure or regulatory hurdles.

Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Axsome Therapeutics, and Anavex Life Sciences. According to TipRanks, Selvaraju has an average return of 3.5% and a 38.48% success rate on recommended stocks.