Jefferies has raised its price target for Corvus Pharmaceuticals, ticker symbol CRVS, from $13.00 to $42.00 while reiterating a Buy rating on the stock. This new valuation suggests substantial potential upside compared with the current share price of $25.89, although it remains above the stock's estimated Fair Value as reported by InvestingPro data.
The catalyst for this marked price target adjustment stems from compelling clinical trial results related to Corvus’s experimental oral ITK inhibitor drug, soquelitinib (SQL), presently under investigation for Alzheimer’s disease (AD). Jefferies described the data as “unambiguously strong,” highlighting a competitive advantage relative to existing treatments and candidates in development.
Following the release of data from the fourth cohort of its clinical studies, Corvus’s share price has experienced a significant upward trajectory. The firm noted that the findings met its most optimistic scenario for SQL’s efficacy and safety profile in AD treatment. Data from InvestingPro confirms this trend, showing returns of approximately 210% over the past week and 412% over the preceding six months, emphasizing the stock’s exceptional performance.
To gauge broader clinical and market sentiment, Jefferies engaged with multiple key opinion leaders (KOLs) within neurology and immunology. These experts expressed cautious optimism regarding SQL’s therapeutic potential and its prospective role in shaping future Alzheimer’s disease treatment protocols.
Looking ahead, Corvus plans to initiate a Phase 2 trial of SQL in the first quarter of 2026. The company also considers extending clinical evaluations into additional indications related to inflammation and immunology, leveraging SQL’s mechanism of action and preliminary profile. Despite the promising clinical data, Corvus remains financially unprofitable, with a reported negative EBITDA of $38.76 million. Nevertheless, the company maintains a strong liquidity position, evidenced by a current ratio of 8.29, which points to solid short-term financial stability.
Corvus recently undertook a notable financing effort by pricing an upsized underwritten public offering of 7,900,677 shares at $22.15 each, expected to raise roughly $175 million in gross proceeds. The underwriting agreement includes a 30-day option for underwriters to purchase an additional 1,185,101 shares at the same price.
Other analyst firms have also adjusted their outlooks positively. H.C. Wainwright increased its price target to $27 from $11, maintaining a Buy rating following Corvus’s disclosure of Phase 1 results for soquelitinib in refractory atopic dermatitis. Meanwhile, Oppenheimer raised its price target to $32 from $15, citing impressive evidence from Alzheimer's disease clinical data as a key rationale.
In a separate development, Corvus announced a $150 million stock offering without publicly disclosing specific terms initially, reflecting ongoing capital-raising activity to support its clinical pipeline and business growth.
These concurrent expansions in clinical progress, analyst confidence, and financial capital position Corvus Pharmaceuticals at a potentially transformative phase in its corporate and research trajectory, particularly within the biopharmaceutical sectors focused on neurodegenerative and immunological therapies.