CGN stock has massive upside, Echelon says

Softer than expected results from Cognetivity Neurosciences (Cognetivity Neurosciences Stock Quote, Chart, News, Analysts, Financials CSE:CGN) aren’t diminishing Echelon analyst’s Stefan Quenneville’s enthusiasm for the stock.

On September 29, CGN reported its Q2, 2024 results. The company lost $1.9-million on revenue of $20.3K, below the analyst’s expectations of a loss of $1.5-million on a topline of $58k.

Despite the miss, Quenneville says he remains bullish on the stock.

“Cognetivity Neurosciences reported operating results for FQ224 (period ended July 31, 2023) that were below expectations as the commercial rollout of its CognICA platform which, while still fledgling, continues to gain commercial traction,” he said. “We continue to believe the recent CMS decision to reimburse Alzheimer’s drugs with traditional FDA approval should serve as a meaningful catalyst to drive the adoption of CognICA, given that the reimbursement is contingent upon collecting real-world evidence of effectiveness through a registry that will gather patient information in an “easy-to-use” format. We continue to view CGN as meaningfully undervalued given the CognICA platform’s proven efficacy, ease of use, and scalability.

In a research update to clients October 2, Quenneville maintained his “Speculative Buy” rating and one-year price target of $0.75 on CGN< implying a return of 369 per cent at the time of publication.