On Friday, Cassava Sciences (NASDAQ:SAVA) received a revised price target from H.C. Wainwright, with the firm raising the target to $131.00, up from the previous $124.00, while reiterating a Buy rating on the stock.
The adjustment follows the company's first-quarter financial and operational results for 2024, which were released on May 10 and showcased advancements in their ongoing Phase 3 clinical trials for simufilam, a drug candidate for mild-to-moderate Alzheimer's disease (AD).
The company is currently conducting two key studies: RETHINK-ALZ and REFOCUS-ALZ. The RETHINK-ALZ trial, a 52-week study, is anticipated to provide top-line results by the end of 2024. Meanwhile, the REFOCUS-ALZ study, which spans 76 weeks, is expected to release its top-line findings in mid-2025. These trials are critical milestones for Cassava Sciences as they progress in the development of simufilam.
The analyst from H.C. Wainwright highlighted the importance of these trials and the potential impact on patients with Alzheimer's. The firm's optimism is reflected in the adjusted price target. Additionally, the analyst noted a significant decrease in the number of diluted shares outstanding, which was a factor in the decision to raise the price target for Cassava Sciences.
InvestingPro Insights
Following the recent financial and operational updates from Cassava Sciences, a closer look at the company's financial health and stock performance metrics from InvestingPro provides additional context for investors. Cassava Sciences holds more cash than debt, which is a positive sign of financial stability (InvestingPro Tip). However, the company's gross profit margins remain weak, and analysts do not anticipate profitability this year, which is reflected in the negative operating income and EBITDA reported over the last twelve months as of Q1 2024 (InvestingPro Tips).
InvestingPro Data shows a market capitalization of $1.03 billion, underscoring the company's substantial valuation despite its current lack of profitability. The stock's Price / Book ratio stands at a high 13.16, which could suggest that it is trading at a premium compared to its book value. Additionally, return metrics indicate significant challenges, with a Return on Assets of -25.63% for the same period.
For investors looking to dive deeper into Cassava Sciences' performance and potential, InvestingPro offers additional insights and metrics, including a total of 7 InvestingPro Tips that can be explored. To benefit from these tips and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/SAVA.
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