UPDATE: Aegis Capital Reiterates Buy Rating, Raises PT on Neuralstem

In a report published Monday, Aegis Capital Corp. reiterated its Buy rating on Neuralstem

, and slightly raised its price target from $3.50 to $4.00. Aegis Capital noted, “Following the news this morning that Neuralstem has received FDA approval to move into spinal cord injury (SCI), we are raising our 12-month price target from $3.50 to $4.00 per share on Neuralstem shares. Investors should note the fact that SCI is the clinical indication that most closely mirrors the situation in the preclinical rat model that yielded the groundbreaking data published in Cell last year. Accordingly, therefore, we believe that Neuralstem may be even more likely to observe clinical improvement in SCI patients than was the case in ALS. Complete Phase 1/2 data from the firm's ALS study of its proprietary stem cells, designated NSI-566, is expected to be available in February 2013, including data from patients administered stem cells at the cervical (neck) level of the spinal cord. We believe that, if there is any improvement in patients given cervical injections, NSI-566 could rapidly progress into Phase 2 testing and could eventually be fast-tracked towards approval in ALS.” Neuralstem closed on Friday at $1.24.