Maxim Group raised its price target for Cassava Sciences (NASDAQ:SAVA) to $12 from $3, citing the recent rise in the company’s share price. The stock closed at $7.93 on Jan. 9.
“Cassava’s shares have risen significantly in value since mid-December, and we expect that trend could continue through 2020 as activity in the Alzheimer’s disease (AD) space continues to heat up,” writes analyst Jason McCarthy.
Mr. McCarthy said that significant insider buying, positive data from Cassava’s Phase 2a trial of PTI-125 and improving sentiment in the AD space are driving the company’s share price.
He pointed out that Cassava’s Phase 2b trial is ongoing and should be funded through the data, which are expected later this year.
“After a very challenging 2019 for microcap biotech stocks from a valuation and financing perspective, since the middle of December, we are seeing renewed investor interest in the prospects for 2020 and beyond,” Mr. McCarthy added.