CervoMed's Q1 EPS Estimates Raised by Brookline Capital Management

CervoMed Inc. (NASDAQ:CRVO) has received an updated earnings forecast for the first quarter of 2025 from Brookline Capital Management. On March 18, 2025, analysts at Brookline Capital issued a research report increasing their earnings per share (EPS) projection for CervoMed from ($0.48) to ($0.47). This adjustment reflects a slightly more optimistic outlook for the company’s financial performance in the upcoming quarter. Brookline Capital Management has maintained a "Strong-Buy" rating for CervoMed stock, suggesting confidence in its future earnings potential.

The consensus forecast for CervoMed’s total earnings for the current fiscal year stands at ($1.88) per share. Along with the Q1 revision, Brookline Capital Management has also provided estimates for subsequent quarters: they project ($0.47) EPS for Q2 2025, ($0.37) EPS for Q3 2025, and ($0.44) EPS for Q4 2025. For the full fiscal year of 2025, the anticipated EPS is set at ($1.75).

Recently, CervoMed announced its quarterly earnings results on March 17, 2025. The company reported an EPS of ($0.80) for the quarter, which fell short of analysts' expectations that had anticipated a loss of ($0.67) by ($0.13). However, CervoMed did achieve revenue of $2.16 million, which surpassed the forecast of $1.51 million. The company continues to operate with challenging financial metrics, reporting a negative net margin of 118.68% and a negative return on equity of 44.11%.

In addition to Brookline Capital Management, several other financial institutions have shared their views on CervoMed. Roth Capital upgraded the stock to a "strong-buy" rating on December 5, while HC Wainwright downgraded it from a "buy" to a "neutral" rating just a few weeks later. Additionally, D. Boral Capital maintained a "buy" rating and set a target price of $10.00 for the stock. Conversely, on December 11, Morgan Stanley reissued an "underweight" rating, indicating caution regarding the stock's value.

The varied opinions among analysts reflect a diverse outlook on CervoMed's performance. Some analysts express optimism, rating the stock as a buy or strong buy, while others maintain a more cautious stance. Currently, one analyst has assigned a sell rating, another has given a hold rating, five have issued buy ratings, and two have provided a strong buy rating. Market data indicates that the average rating for CervoMed is classified as a “Moderate Buy,” with a consensus price target projected at $27.50.

Market Performance

On March 20, 2025, shares of CervoMed opened at $11.56, showing a significant increase of 23.4%. The company's market capitalization stands at approximately $71.33 million, with a price-to-earnings (P/E) ratio of -5.69 and a beta of 1.84. Over the past year, the stock has fluctuated, with a low of $1.80 and a high of $25.92.

Investor Activity

Recent trading activity has attracted attention, with several institutional investors adjusting their positions in CervoMed. Citizens Financial Group Inc. RI increased its stake by 13.2% during the third quarter and now owns 30,509 shares, while FMR LLC entered a new position worth about $56,000 in the same period. Notably, State Street Corp increased its holdings by 28.1%, owning 104,456 shares valued at $1,525,000 after recent purchases. Barclays PLC has also seen significant growth in its stake by 323.6%, now holding 7,748 shares worth $113,000. Overall, 25.15% of CervoMed’s stock is held by institutional investors and hedge funds.

About CervoMed

CervoMed Inc. is a biotechnology firm focused on the development of treatments for age-related neurologic disorders. The company's leading drug candidate, neflamapimod, is an orally administered small molecule aimed at addressing conditions like dementia with Lewy bodies, Alzheimer's disease, frontotemporal dementia, and aiding ischemic stroke recovery.

CervoMed, Earnings, Estimates