Wednesday - Shares of CervoMed (NASDAQ:CRVO), currently trading at $6.17, received an upgrade from Chardan Capital Markets from Neutral to Buy, with a new price target set at $14.00. According to InvestingPro, the stock has shown strong momentum with a 9.26% gain over the past week, despite an 86.57% decline over the past year. Analyst price targets now range from $10 to $16. The upgrade was prompted by positive results from the latest phase of the company’s RewinD-LB study for its drug neflamapimod, which is being developed to treat dementia with Lewy bodies (DLB).
The recent findings from the 16-week open label extension phase showed that patients treated with a new batch of neflamapimod capsules exhibited increased plasma drug concentrations, improvements in Clinical Dementia Rating Sum of Boxes (CDR-SB), and clinical Global Impression of Change (CGIC). These outcomes mark a significant turnaround for the $50.39M market cap company from the initial phase of the study, reported in December 2024, where neflamapimod failed to meet primary or secondary endpoints.
Chardan analysts highlighted the contrast between the previous top-line data and the new results, which align with the outcomes of an earlier Phase 2a study. The analysts noted the efficacy signal from the new batch of capsules as a key factor for their optimistic reassessment of CervoMed’s stock.
The full 32-week data from the open label extension is anticipated to further clarify the potential of neflamapimod. However, Chardan believes the interim 16-week data already provides enough evidence of the drug’s viability as a treatment option for DLB, warranting the upgrade in stock rating and price target.
CervoMed’s progress with neflamapimod comes as a welcome development for the company, which had previously faced setbacks in the drug’s clinical trials. The renewed hope for the drug’s success is now reflected in Chardan’s revised investment outlook for CervoMed’s shares. With the company’s next earnings report due on March 28 and maintaining a FAIR financial health score according to InvestingPro, investors can access additional insights and 8 more ProTips to make informed investment decisions.
In other recent news, CervoMed has been in the spotlight due to its ongoing clinical trials and subsequent analyst upgrades. The company announced preliminary findings from its Phase 2b RewinD-LB trial for the drug neflamapimod, aimed at treating dementia with Lewy bodies. While the double-blind phase showed no significant differences between the drug and placebo, the company noted potential issues with drug bioavailability from an older batch. CervoMed is addressing this by considering a higher dose for future studies, with crucial data from the open-label extension phase expected by the first quarter of 2025.
Following these developments, Brookline Capital Markets upgraded CervoMed’s stock rating from Hold to Buy, setting a price target of $16. This upgrade was driven by promising interim data indicating neflamapimod’s potential to outperform current treatment options. Similarly, Boral (OTC:BOALY) Capital also upgraded the stock to Buy with a $10 price target, citing the company’s proactive measures and forthcoming trial data as key factors. Analysts from both firms have expressed optimism about CervoMed’s future, highlighting the importance of upcoming trial results in shaping the company’s trajectory.
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