On Friday, Maxim (NASDAQ:MXIM) Group analyst Jason McCarthy upgraded Reviva Pharmaceuticals Holdings Inc. (NASDAQ:RVPH) stock rating from Hold to Buy and established a new price target of $7.00, well below the highest analyst target of $17.00.
The $65.21 million market cap company, which according to InvestingPro data typically moves independently from broader market trends with a beta of -0.12, saw McCarthy highlight positive preliminary data from the open-label extension (OLE) study for brilaroxazine, Reviva's investigational treatment for schizophrenia.
The analyst pointed out that the early results from the OLE study add to the existing data on the drug's safety, efficacy, and treatment adherence. This development is seen as a positive sign ahead of the complete data expected in the first quarter of 2025, which is anticipated to be a significant event for RVPH stock. InvestingPro analysis shows the stock has demonstrated high price volatility, with a notable 60% gain over the past six months despite recent market fluctuations.
Additionally, Reviva Pharmaceuticals has recently improved its financial standing by securing $18 million in funding. The company also has the potential to generate an additional $9 million from the 6-month warrants that were part of the financing deal. While InvestingPro data indicates the company maintains more cash than debt on its balance sheet, its current ratio of 0.39 suggests tight liquidity. This injection of capital is expected to support the progression of Reviva's second Phase 3 study.
McCarthy's optimism about the stock is reflected in the new price target, which is based on risk-adjusted revenues projected from brilaroxazine's market potential in treating schizophrenia. The upgrade to a Buy rating from Hold signifies a change in the firm's outlook on the stock's investment potential over the next 12 months.
According to InvestingPro's Fair Value analysis, the stock appears slightly overvalued at current levels, though subscribers can access 8 additional key insights about RVPH's financial health and market position.
In other recent news, Reviva Pharmaceuticals has reported significant strides in its ongoing trials for brilaroxazine, a new treatment for schizophrenia. The company's RECOVER-1 study has shown promising Phase 3 clinical trial results, indicating that brilaroxazine effectively treats positive, negative, and cognitive symptoms in schizophrenia patients.
Roth/MKM and EF Hutton have initiated a Buy rating on Reviva with a 12-month price target of $7.00 and $15.00 respectively, reflecting confidence in the company's lead product.
Reviva has completed an equity offering, resulting in the sale of approximately 1.9 million shares of common stock. The company's financial health assessment rates it as 'FAIR' with a score of 2.16, suggesting potential for future growth. These are among the recent developments at Reviva Pharmaceuticals.
The company plans to submit a New Drug Application (NDA) to the FDA in mid-2026 based on the long-term safety data from at least 100 patients who have completed one year of treatment. Furthermore, Reviva aims to explore brilaroxazine's potential for other neuropsychiatric conditions and has received Orphan Drug Designation by the FDA for the treatment of pulmonary arterial hypertension and idiopathic pulmonary fibrosis.
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