Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Cognition Therapeutics (CGTX – Research Report). The associated price target is $5.00.
Ram Selvaraju has given his Buy rating due to a combination of factors, primarily centered around the promising development of Cognition Therapeutics’ lead candidate, zervimesine. The company has reported positive data from its Phase 2 studies for Alzheimer’s disease and dementia with Lewy bodies, indicating potential efficacy in these conditions. Moreover, Cognition Therapeutics has strategically reallocated resources to prioritize these indications, aiming to extend their cash runway and support planned registrational programs.
Additionally, the market potential for dementia with Lewy bodies is substantial, as it is one of the most common neurological conditions, presenting a significant opportunity for zervimesine. The company is preparing for end-of-Phase 2 meetings with the FDA, which could pave the way for Phase 3 clinical trials. Despite adjusting the price target to $5 due to a potentially extended timeline to market, the overall outlook remains positive, supporting the Buy recommendation.
In another report released on March 21, Chardan Capital also maintained a Buy rating on the stock with a $8.00 price target.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CGTX in relation to earlier this year.
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