In a research report released Tuesday, FBR analyst Christopher James reiterated an Outperform rating on shares of Anavex Life Sciences Corp. (NASDAQ:AVXL), with a $10 price target, after the biopharmaceutical company presented additional data from its ongoing Part-B extension of the Phase IIa study with Anavex 2-73 (AV2-73) in Alzheimer’s disease (AD) at the AAIC meeting being held in Toronto.
James wrote, “From the two posters presented at AAIC, we provide three key takeaways: (1) stable scores on MMSE and ADCS-ADL demonstrate activity in a disease state with an expected decline over time; (2) although cognitive improvements and effects waned slightly at the 31-week timepoint, the consistency of achieved cognitive benefits is encouraging; and (3) we believe the recent share weakness following the data further highlights an attractive opportunity in neurological diseases, including orphan Rett syndrome. Despite mixed results from the 31-week follow-up period, we believe the opportunity with AV2-73 remains very attractive. We draw investors attention to additional data with AV2-73 in AD at 43 weeks and the initiation of a Phase II study in Rett syndrome, expected later this year. We reiterate our Outperform rating and would be buyers on the weakness.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher James has a yearly average return of -15.4% and a 38% success rate. James has a -5.8% average return when recommending AVXL, and is ranked #3972 out of 4087 analysts.
As of this writing, the 2 analysts polled by TipRanks rate Anavex Life a Buy. With a return potential of 196%, the stock’s consensus target price stands at $12.50.