Cassava Sciences Inc (NASDAQ: SAVA) is making a run for the top in the market this morning. However, if you’re looking for press releases or SEC filings, you’re not going to find any. The catalyst for this move seems to be the result of analyst coverage. Here’s what’s going on:
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SAVA Stock Is Up on Analyst Coverage
As mentioned above, Cassava Sciences is flying in the market this morning. While no press releases or SEC filings seem to be the catalyst, analysts at Cantor Fitzgerald have begun to cover the stock.
Cantor Fitzgerald initiated SAVA at a rating of “Overweight.” The analyst also set a price target on the stock of $24. The bullish opinion from the analysts has to do with the company’s work in the treatment of Alzheimer’s disease and other neurodegenerative diseases.
Most recently, SAVA announced data from a Phase 2b clinical study of Sumifilam, its lead investigational candidate in Alzheimer’s disease. The data from the study suggest that the treatment is capable of improving a wide range of biomarkers in Alzheimer’s disease patients.
As a result of the positive Phase 2b data, the company’s work to bring the treatment to market is likely going to go into overdrive. Once it gets there, Cassava Sciences may quickly become the leader in the space.
Let’s not forget, Alzheimer’s disease is a devastating ailment with few treatment options that greatly lack efficacy. Should the data surrounding Sumifilam continue to be positive, and the treatment make it to market, it has the potential to become the stnadard of care for patients and a blockbuster revenue driver for the company and its investors.
The Bottom Line
The bottom line here is simple. Cantor Fitzgerald initiated coverage on Cassava Sciences with an overwhelmingly bullish opinion. That opinion surrounding the company’s work in Alzheimer’s disease and further validates the potential value Sumifilam brings to the table. All in all SAVA stock is one to watch closely.
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