Canaccord cuts Annovis Bio stock target to $17; keeps Buy rating

On Thursday, Canaccord Genuity adjusted its outlook on Annovis Bio Inc . (NYSE:ANVS) shares, reducing the price target to $17.00 from the previous $26.00. Despite the lowered target, the firm maintained a Buy rating on the stock. Currently trading at $1.69, ANVS sits well below the broader analyst target range of $8-20. According to InvestingPro data, the stock has experienced significant volatility, falling over 80% in the past year. The adjustment follows the company’s first-quarter results for the year 2025.

Analysts at Canaccord have revised their financial model for Annovis Bio post the first-quarter earnings release. They continue to factor in a 25% probability of approval for buntanetap, the company’s treatment for early Alzheimer’s Disease (AD), and anticipate a potential market launch in 2028 at an unchanged annual price of $17,500. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 10.68, though it remains unprofitable with an EBITDA of -$25.17 million. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate ANVS’s potential.

Canaccord’s updated estimates suggest unadjusted peak sales reaching approximately $2.0 billion by 2035, accounting for a 4.0% market share. The analysts clarified that their sales forecast is more indicative of buntanetap as a treatment for symptom management rather than a drug that slows disease progression. Nevertheless, they acknowledge that their peak sales estimates might be considered conservative, particularly given buntanetap’s strong safety profile to date.

The firm has also slightly reduced its near-term operating expense projections for Annovis Bio based on trends observed in the first quarter of 2025. Additionally, Canaccord anticipates that the company will undertake a fundraising round in the third quarter of 2025 at around the current share price. They expect further capital raises to follow, contingent upon potentially positive data from ongoing research.

The primary factor for the reduction in the price target from $26 to $17 is attributed to the anticipated increase in share count due to financing-related dilution. This dilution is expected as the company seeks additional capital to advance its clinical programs and prepare for the potential commercialization of buntanetap. While the company holds more cash than debt on its balance sheet, its Financial Health Score of 1.57 suggests potential challenges ahead, according to InvestingPro metrics.

In other recent news, Annovis Bio has faced a notification from the New York Stock Exchange (NYSE) regarding non-compliance with its continued listing standards. The company’s market capitalization fell below the required $50 million threshold, averaging approximately $37.9 million over the past 30 trading days. Additionally, Annovis Bio reported stockholders’ equity of $9.3 million as of December 31, 2024, which also fails to meet the NYSE’s standards. In response, the company plans to submit a proposal within 45 days to regain compliance, allowing them to continue trading on the NYSE during this period. Meanwhile, Annovis Bio has appointed Hui Liu as the new Director of Biostatistics amid its ongoing Phase 3 clinical trial for Alzheimer’s disease. Liu brings over 19 years of experience in clinical trial design and analysis, which is expected to strengthen the company’s data integrity and regulatory submissions. The company is actively working on advancing its pivotal clinical trials and enhancing the evidence required for potential regulatory approval. Annovis Bio’s common stock will temporarily include a ".BC" indicator to denote its below-criteria status until compliance is regained.

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