In a research report released Friday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on shares of Neuralstem, Inc. (NASDAQ:CUR), while slashing the price target to $4.00 (from $8.00), which still implies a huge upside of 1805% from current levels.
Aschoff noted, “We acknowledge that our prior $8 target price appeared a bit aggressive and as such we are assuming a more conservative stance in our valuation, particularly regarding NSI-566, and have lowered our target price to $4.”
In addition, Neuralstem ended the second quarter with about $11.1 million in cash. The decrease in SG&A expense is largely due to reductions in compensation expenses under a cost saving plan. Aschoff believes that the cost saving plan underscores new management’s dedication to seeing the pipeline through.
Neuralstem continues to enroll patients into the multi-site Phase 2 trial with NSI-189 for major depressive disorder, which was initiated in May, and results are expected to be released in 2H17.
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 Jonathan Aschoff has a yearly average return of -10.6% and a 35.9% success rate. Aschoff has a -68.7% average return when recommending CUR, and is ranked #4001 out of 4110 analysts.
Shares of Neuralstem are currently trading at 0.2164, down $0.004 or -1.77%.