Aegis Capital Reiterates Buy Rating on Neuralstem Following 2Q13 Financial Results
In a report published Friday, Aegis Capital analyst Raghuram Selvaraju, Ph.D. MBA reiterated a Buy rating and $4.00 price target on Neuralstem (NYSE: CUR).
In the report, Aegis Capital noted, “Last week, Neuralstem reported financial results for the second quarter of 2013. The firm closed the quarter with $11.2mm in cash and equivalents, which we anticipate to be sufficient to fund operations well into 2014. The firm reported a higher-than-anticipated net loss per share of $0.09, due primarily to a non-cash charge of $2.4mm based on warrant issue modification. Near-term, Neuralstem is expected to begin dosing of its proprietary neural stem cell line therapeutic, NSI-566, in a Phase 2 trial enrolling patients with amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease. From our perspective, this could represent a substantial value driver in the future if NSI-566 is able to demonstrate meaningful clinical benefit in the ALS patients to be enrolled in this study. We also note that the company is slated to report data from the Phase 1b trial of its small molecule agent, NSI-189, in October 2013 and should start dosing with NSI-566 in a proof-of-concept spinal cord injury (SCI) trial within the next couple of months as well. In anticipation of these clinical catalysts, we reiterate our Buy rating and 12-month price target of $4.00 per share on CUR.”
Neuralstem closed on Thursday at $1.48.
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