CervoMed: Roth Capital Downgrades Buy to $16 from $20 PT.

CervoMed: Roth Capital Downgrades Buy to $16 from $20 PT.

Roth Capital Partners has downgraded its rating on CervoMed (NASDAQ: CRVO) from a "Buy" to a "Hold," lowering its price target from $20 to $16. The move comes following the company's second-quarter 2025 earnings report, which showed mixed results. Revenue for the quarter came in at $1.76 million, down 47% from the same period last year, while the net loss widened to $6.26 million, a 170% increase from the previous year. Earnings per share (EPS) also deteriorated, with the company reporting a $0.70 loss per share compared to $0.27 in the same quarter last year.

Despite the revenue missing analyst estimates by 22%, the company's shares have seen a 12% increase from a week ago. Roth Capital Partners expects revenue to grow at an average annual rate of 11% over the next three years, compared to a 19% growth forecast for the broader biotech industry in the US.

Roth Capital Partners highlighted several risks, including a 170% increase in net loss, a 47% decrease in revenue, and a significant deterioration in EPS. They also noted that the company's shares are trading at a 12% premium to the new price target, suggesting that the market may be pricing in a recovery or future growth.

References:
[1] https://finance.yahoo.com/news/cervomed-second-quarter-2025-earnings-143546613.html