Maxim Group Thinks Anavex Life Sciences’ Stock is Going to Recover

By Jason Carr

Maxim Group analyst Jason Kolbert assigned a Buy rating to Anavex Life Sciences (NASDAQ: AVXL) today and set a price target of $5. The company’s shares opened today at $2.50, close to its 52-week low of $2.45.

Kolbert commented:

“We have increased our therapeutic rate cut in our model to 90%, from 75% – taking our price target to $5, from $14, which is still substantially higher versus the current stock price – due to a combination of factors which include: ○ The trial was delayed (biomarkers) and will take time and money. While the company has $28M in capital today, we believe a lot more capital will be needed as the next phases of clinical development get underway, ○ When will we see meaningful clinical data that can convince both KOL’s and Industry experts that the company may have a drug? It will take time.”

According to TipRanks.com, Kolbert is ranked 0 out of 5 stars with an average return of -7.4% and a 32.5% success rate. Kolbert covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, SELLAS Life Sciences Group Inc, and Arbutus Biopharma Corporation.

Anavex Life Sciences has an analyst consensus of Moderate Buy, with a price target consensus of $5.

The company has a one-year high of $6.64 and a one-year low of $2.45. Currently, Anavex Life Sciences has an average volume of 327.2K.

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Anavex Life Sciences Corp. is a clinical stage biopharmaceutical company, which engages in the development of differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental diseases. Its lead compound, ANAVEX2-73, is being developed to treat Alzheimer’s and Parkinson’s disease and central nervous system diseases, including Rett syndrome. The company was founded by Harvey Lalach and Athanasios Skarpelos on January 23, 2004 and is headquartered in New York, NY.