Yesterday morning, Anavex Life Sciences Corp (NASDAQ:AVXL) presented positive data after investigating its pipeline drug Anavex 2073, a sigma-1 receptor antagonist that could promote recovery of motor function and reactivation of neuroplasticity in patients suffering from neurocognitive diseases, in a mouse model of Parkinson’s disease (PD).

In reaction, FBR analyst Christopher James reiterates an Outperform rating on shares of AVXL with a $10 price target, which represents a 217% increase from where the stock is currently trading.

Presently, the compound is undergoing evaluation in a Phase II clinical study in Alzheimer’s disease, as James notes that both Anavex 2073’s safety as well as its tolerability have been established already in prior clinical trials. Data presented at the World Parkinson Congress 2016 revealed the biotech firm’s drug had led to significant motor recovery, fostered neurohistological restoration, and lessened microglial activation in 6-hydrodopamine-lesioned mice.

“No changes related to dystonia or stereotypic behaviors were reported for the animals’ behavioral patterns. Further data analysis evaluating neuroprotective effects of the compound and possible mechanisms of action is ongoing. We believe that these positive data in animal studies, could lead to advancement of Anavex 2-73 into clinical studies in Parkinson’s disease, and remain focused on the additional data in this particular indication,” James concludes.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Christopher James is ranked #4,007 out of 4,189 analysts. James has a 44% success rate and faces a loss of 9.6% in his annual returns. When recommending AVXL, James loses 38.1% in average profits on the stock.

TipRanks analytics exhibit AVXL as a Buy. Based on 2 analysts polled in the last 3 months, 100% rate a Buy on AVXL. The 12-month price target stands at $12.50, marking a nearly 296% upside from where the shares last closed.