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CervoMed (CRVO)
NASDAQ:CRVO

CervoMed (CRVO) AI Stock Analysis

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CRVO

CervoMed

(NASDAQ:CRVO)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
$7.00
▼(-1.13% Downside)
Score is primarily held back by weak financial performance (minimal revenue, widening losses, and accelerating cash burn) and a technically weak price trend (below key moving averages with soft momentum). Positive Phase 2b readouts and FDA alignment for Phase 3 provide an important offset, but do not fully counterbalance near-term funding and execution risks implied by the financials.
Positive Factors
Positive Clinical Trial Results
The positive Phase 2b trial results for neflamapimod enhance CervoMed's potential market position in treating dementia with Lewy bodies, indicating a promising future for product commercialization and regulatory approval, which could drive long-term growth.
Strategic Leadership Changes
The strategic leadership changes, including new executive appointments, aim to strengthen CervoMed's focus on clinical development and regulatory affairs, potentially improving operational efficiency and aligning with long-term strategic goals.
Improved Leverage Metrics
Improved leverage metrics, with no total debt reported, reduce financial risk and enhance CervoMed's financial stability, providing a stronger foundation for future growth and investment in R&D.
Negative Factors
Lack of Revenue Generation
The absence of revenue generation highlights CervoMed's reliance on external funding and poses a significant challenge to achieving profitability, impacting long-term financial sustainability.
Persistent Financial Losses
Persistent financial losses and negative net income reflect ongoing operational challenges, limiting CervoMed's ability to reinvest in growth opportunities and potentially affecting investor confidence.
Negative Cash Flow
Negative operating cash flow indicates cash outflows from operations, necessitating reliance on financing for liquidity, which could constrain CervoMed's financial flexibility and ability to fund future R&D initiatives.

CervoMed (CRVO) vs. SPDR S&P 500 ETF (SPY)

CervoMed Business Overview & Revenue Model

Company DescriptionCervoMed Inc., a clinical-stage biotechnology company, engages in the development and commercialization of drug treatments for neurodegenerative diseases. It develops neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, and brain stroke recovery. The company is based in Boston, Massachusetts.
How the Company Makes MoneyCervoMed generates revenue primarily through the development and commercialization of its therapeutic products. The company invests heavily in research and development to create proprietary drugs and treatments, which are then patented and brought to market. Revenue streams include product sales, licensing agreements, and potential collaborations with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on sales, contributing significantly to CervoMed's earnings. Additionally, the company may receive funding from grants and research institutions to support its development pipeline.

CervoMed Financial Statement Overview

Summary
CervoMed faces significant challenges in terms of revenue generation and profitability with consistent operational losses. While the balance sheet shows improved leverage metrics, the absence of revenue growth and persistent cash flow issues highlight the financial instability. The company's reliance on financing activities for liquidity further indicates ongoing financial risks.
Income Statement
12
Very Negative
CervoMed has shown a lack of revenue generation in recent years, with no revenue recorded in the latest periods and a significant decrease from the previous year. The company's gross profit margin is nonexistent due to zero revenues, and the net income remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.
Balance Sheet
58
Neutral
The company's balance sheet shows a positive equity position with a growing stockholders' equity, but this is overshadowed by historical high levels of debt and negative equity in prior years. The current debt position is improved with no total debt reported, leading to a lower leverage risk. However, persistent negative net income affects the return on equity.
Cash Flow
18
Very Negative
CervoMed has consistently negative operating cash flow, indicating cash outflows from regular operations. Despite the negative free cash flow over the years, the company has managed to maintain liquidity through significant financing activities. However, declining free cash flow growth poses a concern for future cash availability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue322.57K0.000.000.000.000.00
Gross Profit322.57K0.000.000.000.00-103.17K
EBITDA-26.89M-18.23M-7.81M-5.80M-15.94M-15.76M
Net Income-25.58M-16.29M-2.17M-5.80M-24.10M-14.19M
Balance Sheet
Total Assets30.61M43.08M9.97M4.16M37.84M27.73M
Cash, Cash Equivalents and Short-Term Investments27.29M38.92M7.79M4.09M37.31M18.52M
Total Debt0.000.000.0012.41M0.00149.16K
Total Liabilities4.60M3.88M2.60M13.16M2.93M2.92M
Stockholders Equity26.01M39.20M7.38M-9.00M34.91M24.81M
Cash Flow
Free Cash Flow-24.93M-16.53M-7.45M-2.57M-14.50M-13.55M
Operating Cash Flow-24.93M-16.53M-7.45M-2.57M-14.50M-13.55M
Investing Cash Flow22.03M-28.66M0.000.004.00K0.00
Financing Cash Flow4.59M46.40M11.15M0.0033.30M17.89M

CervoMed Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.08
Price Trends
50DMA
8.11
Negative
100DMA
8.24
Negative
200DMA
8.34
Negative
Market Momentum
MACD
-0.26
Positive
RSI
36.39
Neutral
STOCH
15.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRVO, the sentiment is Negative. The current price of 7.08 is below the 20-day moving average (MA) of 7.81, below the 50-day MA of 8.11, and below the 200-day MA of 8.34, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRVO.

CervoMed Risk Analysis

CervoMed disclosed 75 risk factors in its most recent earnings report. CervoMed reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CervoMed Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$121.72M-1.12-103.99%250.00%15.15%
52
Neutral
$316.52M-0.37-156.87%2925.73%-294.29%
52
Neutral
$42.54M-0.26-191.12%-24.38%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$65.51M-2.51-71.42%-38.81%-76.96%
44
Neutral
$49.82M-9.05-40.32%56.52%75.22%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRVO
CervoMed
7.08
4.97
235.55%
XFOR
X4 Pharmaceuticals
3.62
-11.61
-76.23%
ABVC
ABVC BioPharma
2.05
1.51
279.63%
JSPR
Jasper Therapeutics
1.52
-3.99
-72.41%
PRLD
Prelude Therapeutics
2.15
1.10
104.76%
ESLA
Estrella Immunopharma
0.97
-0.21
-17.80%

CervoMed Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
CervoMed Releases Updated Investor Presentation and Business Overview
Neutral
Jan 8, 2026

On January 8, 2026, CervoMed Inc. disclosed that it has made an investor presentation available on its website under the “Investors – Events and Presentations” section, summarizing information about its business, clinical studies, development plans, financial position and related matters. The company noted that its representatives may periodically use this presentation, with possible non-material modifications, in conferences and investor meetings, emphasized that the materials should be considered in the context of its broader SEC filings and public announcements, and clarified that the furnished information is not deemed “filed” for purposes of the Exchange Act and does not carry the associated liability unless specifically incorporated by reference in future regulatory filings.

The most recent analyst rating on (CRVO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
CervoMed’s Promising Phase 2b Trial Results for DLB
Positive
Dec 5, 2025

CervoMed announced new data from its Phase 2b RewinD-LB trial, presented at the 18th Clinical Trials on Alzheimer’s Disease Conference in December 2025, showing that neflamapimod treatment led to improvements in neuroinflammation and neurodegeneration markers in patients with dementia with Lewy bodies. The trial demonstrated significant reductions in plasma GFAP levels and an increase in the Ab42/40 ratio, suggesting that neflamapimod may act on the underlying disease process. These findings reinforce previous studies and support the initiation of a Phase 3 trial, highlighting the potential impact on treatment options for DLB, a condition with no approved treatments in the US or EU.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
CervoMed Gains FDA Alignment for Phase 3 Trial
Positive
Nov 4, 2025

On November 4, 2025, CervoMed Inc. announced it received alignment from the U.S. FDA on key aspects of its proposed Phase 3 clinical trial for neflamapimod, aimed at treating dementia with Lewy bodies (DLB). The feedback allows CervoMed to proceed with its trial design, which includes a global, randomized, double-blind study involving approximately 300 patients, with the trial set to begin in the second half of 2026. This development marks a significant milestone for CervoMed, reinforcing its scientific approach and providing a regulatory pathway toward potential approval. The trial is designed to exclude patients with Alzheimer’s disease co-pathology and will focus on cognitive and functional decline, with the aim of establishing neflamapimod as a first-in-class treatment for DLB, a condition currently lacking approved therapies.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
CervoMed Appoints David Quigley to Board of Directors
Positive
Oct 29, 2025

On October 27, 2025, CervoMed Inc. appointed David Quigley, a former Senior Partner at McKinsey & Company, to its Board of Directors. Quigley’s extensive experience in life sciences and private equity is expected to support CervoMed’s strategic initiatives as it prepares for key milestones, including FDA feedback on its planned Phase 3 trial for dementia with Lewy bodies. His appointment expands the Board to eight members and is seen as a strategic move to leverage his business strategy and financial insights for advancing CervoMed’s mission and enhancing value for stakeholders.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
CervoMed Releases Investor Presentation on Website
Neutral
Oct 22, 2025

CervoMed Inc. has made available a presentation on its website, detailing its business, clinical studies, and financial position. This information is intended for use in investor and analyst meetings, and while the company may update this information, it is not obligated to do so unless required by law.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025