Why This Analyst Sees Big Upside in COVID-19 Immunotherapy Study
After Corvus Pharmaceuticals announced that it would initiate an early-stage immunotherapy study in patients with COVID-19, Wedush sees this stock running much higher.
Corvus Pharmaceuticals Inc. (NASDAQ: CRVS) made a big splash on Tuesday by announcing that it would initiate an early-stage immunotherapy study in patients with COVID-19. This incredible move caught the attention of one key analyst, who sees this stock running much higher.
Corvus initiated a Phase 1 study to investigate a novel immunotherapy approach for patients with COVID-19. This comes after the U.S. Food and Drug Administration’s (FDA) review and acceptance of the firm’s investigational new drug (IND) application for the COVID-19 study.
Wedbush reiterated an Outperform rating and raised its price target to $8 from $5, which implies an upside of 53% from the most recent closing price of $5.22.
Wedbush believes that this treatment with CPI-006 could be a compelling strategy to generate robust humoral adaptive immune responses and improve clinical outcome in COVID-19 patients, based on the presented data and given high antiSARS2-CoV-2 antibody titers demonstrated in a recently enrolled patient with COVID-19 with a number of comorbidities.
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Although the use of convalescent serum as a therapeutic option for COVID-19 is further along clinically with positive case reports, the boutique brokerage firm believes CPI-006 could be a highly complementary approach. More importantly, it could actually increase the magnitude of the response achieved by recovered patients.
Additionally, Wedbush sees CPI-006 as potentially representing a more accessible approach in the treatment setting versus convalescent plasma therapy, due to scalability challenges of the serum approach.
Look for initial data from Corvus’s COVID-19 Phase 1 study later this year.
Corvus Pharmaceuticals stock traded up about 9% on Wednesday to $5.39, in a 52-week range of $1.01 to $6.88. The consensus price target is $9.20.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
