Keep on Buying Cassava Stock, Says Analyst Following Positive Clinical Data

The markets have been volatile recently, but the fluctuations have been nothing like those exhibited by Cassava Sciences (SAVA) stock. After a mercurial ascent throughout the year’s first half, since the end of July, shares have lost 55% of their value.

The stock’s rise and fall has been entirely based on the events surrounding simufilam – the company’s prospective treatment for the notoriously difficult-to-treat Alzheimer’ disease (AD). Earlier in the year, the data from an ongoing open-label study showed that the drug improved patients’ cognitive behavior after 6 months and even after 9 months of therapy – something that no Alzheimer’s treatment has ever done before. But then questions regarding the company’s methods and use of the data surfaced and a citizen petition was filed with the FDA alleging the data was manipulated and the study’s results were a sham. Following which Cassava stock appeared more like hot potatoes – hot cassavas? – with investors backing away.

Sentiment has been low, then, but might a turnaround be in the cards? On Wednesday, the company reported that following 12-months of simufilam treatment, patients’ cognitive functions further improved – albeit at a more measured pace – and stressed that the analysis was done by two separate independent biostatisticians after the cognitive test results were entered into a system overseen by an outside company.

Longtime fan B.Riley’s Mayank Mamtani has backed Cassava all the way, but while the analyst says the cognition data could “help reinvigorate confidence” ahead of the imminent Phase 3 study (earmarked for Q4), he thinks more information will be required for sentiment to truly change.

“While this cognition data update and evaluation methodology, to some extent, helps assuage investor concerns emanating from the recent Citizen’s Petition filed challenging the core scientific hypothesis of simufilam, we highlight the need for supportive 12-month biomarker analyses, also similarly conducted independent of the company and its affiliates to help reconstruct comparable levels of confidence in simufilam’s disruptive potential noted earlier in 3Q when SAVA posted a comprehensive 9-month data update at AAIC’21 medical conference,” Mamtani noted.

All in all, Mamtani maintains a Buy rating on SAVA shares along with a $108 price target. Investors could be sitting on returns of 80%, should his thesis bear fruit over the next 12 months. (To watch Mamtani’s track record, click here)

The unanimous Strong Buy consensus rating on this stock, supported by 4 Buy ratings and 1 Hold, makes it clear that Mamtani is not alone in his bullish view. The average price target here, $147.40, is even more optimistic, suggesting an upside of ~145% from the current trading price of $60.12. (See Cassava stock analysis on TipRanks)

1e47fb59819b5d1d9069811757e6e323

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Source: Keep on Buying Cassava Stock, Says Analyst Following Positive Clinical Data

*This is a free press release. Upgraded press releases are ad-free!

New York #1 Best-Selling Author Finds Inspiration in Shen Yun

LOUISVILLE, Ky.—Dr. David West Reynolds holds a Ph.D. in archeology specializing in ancient Rome and Egypt. He’s also the New York Times #1 best-selling author of Star Wars guide books. His books have been translated into a dozen languages and have sold over 2 million copies around the world. He has also written books on…

Read Press Release

Mark Cuban believes that Bitcoin is the best store of value

Ethereum has more use cases than Bitcoins as per billionaire Mark Cuban and Shark TankCuban sees BTC as digital Gold, and deemed that Bitcoin is what the Gold folks are doingCuban advocates smart contracts platform Ethereum and layer 2 solutionsMark Cuban believes that investors could choose Bitcoin to invest in the longer time-frameEthereum and Bitcoin…

Read Press Release

The changing nature of beauty packaging

In a fiercely competitive market, packaging can make an enormous difference in which beauty products do best. Here we examine how sustainability and influencer marketing is affecting the look and feel of the beauty sector In 2020, the UK’s beauty industry was reportedly worth £27 billion, and has been valued at around $500 billion globally.…

Read Press Release

Keep on Buying Cassava Stock, Says Analyst Following Positive Clinical Data - Click To Share

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Share on whatsapp