CervoMed (CRVO) is climbing 3% after Boral Capital upgraded the shares to Buy from Hold. The investment bank placed a $10 price target on the drug maker.

Why Boral Upgraded CRVO

After meeting with CRVO's management and analyzing its recent drug trial results, Boral believes that the company can improve the performance of its neflamapimod drug by using a higher dose of 80 milligrams in upcoming trials. Neflamapimod is a potential treatment for dementia with Lewy bodies.

A scientist in the lab, researching the development of biopharmaceutical monoclonal antibody drugs.

Boral thinks that the data from the company's OLE trial can boost the shares. The data is expected to be released in two stages, with the first information slated to be unveiled during the current quarter and another batch poised to be released in the second quarter.

More Information About CRVO

Preliminary data from a Phase 2b trial of neflamapimod did not indicate that the drug was significantly more effective than a placebo as a treatment for dementia with Lewy bodies, CRVO disclosed in December. The news caused the company's shares to tumble sharply. However, Boral thinks that the drug can achieve significantly better results in future trials after the company took steps to improve its performance.

"We continue to believe neflamapimod may have potential as a treatment for DLB, and we will thoroughly analyze the clinical and pharmacokinetic data from the trial to better understand its outcome and potential future development paths for the drug," CEO John Alam said in a statement in December.

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Disclosure: None. This article is originally published at Insider Monkey.