Analyst Soumit Roy of JonesTrading maintained a Buy rating on CervoMed, retaining the price target of $20.00.
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Soumit Roy has given his Buy rating due to a combination of factors related to CervoMed’s strategic plans and clinical trial progress. The company is preparing for a Phase 3 trial of neflamapimod in patients with dementia with Lewy bodies (DLB), with plans to engage with the FDA in late 2025 to finalize the trial design. This upcoming trial is significant as it aims to address the high unmet medical need in DLB, a condition currently lacking disease-modifying therapies.
Additionally, CervoMed’s recent analysis from the Phase 2b trial suggests a promising approach to patient selection, using a specific biomarker threshold to identify those with ‘pure’ DLB. Although there are concerns about capital constraints and patient screening, the potential for FDA approval to proceed directly to Phase 3 could ease financial pressures and positively impact the stock. The company’s cash position, with a runway into the third quarter of 2026, supports its near-term operational plans, further justifying the Buy rating.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $20.00 price target.