RE:SVA, SPEC BUY, PT $3.25 Potential 100% increase.
Echelon analyst Stefan Quenneville commenced coverage on Sernova with a "speculative buy" rating, touting its Cell Pouch System (CPS) as a "potential 'functional cure' for diabetes and other chronic diseases." Mr. Quenneville set a share target of $3.25. Analysts on average target the shares at $2.75. The Globe says Mr. Quenneville sees recent clinical and business milestones as potential catalysts for the stock. He says in a note: "In Type 1 Diabetes, its most advanced indication, the CPS has demonstrated that it is a safe, organ-like environment for implanted pancreatic islet cells to produce healthy levels of insulin and reduce/eliminate insulin dependence, positioning it as a potential functional cure for the most difficult to manage diabetes patients. ... The CPS appears to be safer than competing clinical-stage devices while better controlling T1D symptoms and pathology, according to recent updates from key competitors, ViaCyte and Beta-O2 (both private)." The Globe reported on Jan. 18 that iA Capital analyst Chelsea Stellick began coverage on Sernova with a "speculative buy" call. The shares were then worth $1.56.