Find more important details in the ENVB company presentation here.
Right now, ENVB has several potential breakout catalysts to know ahead of Monday's opening bell. Here's what to know:
No. 1 ENVB Potential Catalyst - Analyst Coverage And $1.25 Price Target
At the start of June, James Molloy of Alliance Global Partners tagged ENVB with a $1.25 price target.
This gives ENVB over 400% potential upside from its closing valuation as of Friday afternoon.
Here's some highlights from the report:
Valuation: Our 12-18 month price target for ENVB is $1.25/share based primarily on our expectations for EVM-101 for CRD. We model that EVM-101 is approved in 1H28 and launched in 2H28, reaching ~$250M in sales by 2030, year 3 of the launch. We place a 4x multiple on these $250M revenues, discounted back 7 years at 45% for our $0.50/share valuation. We model that EVM-201 is approved in 2H28 and launched in 1H29, reaching ~$350M in sales by 2031, year 3 of the launch. We place a 4x multiple on these $350M revenues, discounted back 8 years at 50% for our $0.45/share valuation. We model that EVM-301 is launched in 2031, reaching ~$750M in sales by 2034, year 3 of the launch. We place a 4x multiple on these $750M revenues, discounted back 11 years at 60% for our $0.15/share valuation. We value the remaining technology at ENVB (primarily the Psybrary machine learning asset for dr-ug discovery) and cash (end-'23E) at $0.15/share for our $1.25/share value at the end of 2023.
Read the full report here.
No. 2 ENVB Potential Catalyst - This Proposed Spin-off Could Create Massive Opportunity
Enveric Biosciences Announces Plans to Spin-off and Dividend its Cann-a-binoid Pipeline to Shareholders
The proposed spin-off would create two separate and distinct biotechnology companies, one developing next-generation psych-e-delic-inspired treatments and the other developing innovative cann-a-binoid treatments
NAPLES, FL, May 11, 2022 /PRNewswire/ - Enveric Biosciences (NASDAQ: ENVB) ("Enveric" or the "Company"), a neuroscience-focused biotechnology company developing next-generation, psych-e-delic-inspired mental health medicines, today announced plans to transfer and spin-off its cann-a-binoid clinical development pipeline assets to a wholly-owned subsidiary, Acanna Therapeutics Inc. ("Acanna"), by way of dividend to Enveric shareholders. The spin-off transaction will be subject to various conditions, including Acanna meeting the qualifications for listing on The Nasdaq St-ock Market, and if successful, would result in two standalone public companies.
Dr. Joseph Tucker, CEO of Enveric Biosciences, commented, "In these challenging markets, the Board and Management team have spent considerable time evaluating the best way to create additional value for all stakeholders – patients, shareholders, and employees. We believe it would be in the best interest of our shareholders to spin-off 100% equity ownership of our cann-a-binoid clinical development pipeline. Upon completion of the proposed transaction, each resulting public company would be able to focus all its resources on the development of its respective pipeline assets, enabling, we anticipate, greater opportunity for product development success."
Dr. Tucker continued, "For Enveric and Acanna, this spin-off transaction would allow each company to commit 100% of its efforts and capabilities towards developing its respective dr-ug candidate portfolio. For Enveric, going forward, we intend to focus on mental health. We believe that Enveric's achievements in the last year, including preparations for a clinical trial, positive preclinical data, and ongoing expansion of our drug candidate portfolio, the Psybrary™, position us well for the future."
Strategic Rationale for Spinoff
The Company believes that spinning off the cann-a-binoid assets will allow Enveric and Acanna to maximize long-term value for all stakeholders. Following the proposed transaction, both Enveric and Acanna intend to:
- Have separate, focused management teams with the knowledge and skills to deploy appropriate strategies and meet the unique requirements for each company's operations.
- Allocate capital more efficiently and strategically to develop their respective assets further.
- Provide unique in-vest-ment characteristics of interest to the capital markets.
Read the full article here.
No. 3 ENVB Potential Catalyst - A Recent Hot Streak Has ENVB Trading From A Position Of Potential Strength
Over the past two plus weeks, ENVB appears to be heating up.
So much so that (as of 11:00AM EST Friday) it has moved over several lines of potential support.
Those include ENVB's:
- 5-Day Simple Moving Average (SMA)
- 20-Day SMA
- 50-Day SMA
- 5-Day Exponential Moving Average (EMA)
- 13-Day EMA
That's great and all, but here's the key detail to pay attention to.
As of 11:00AM EST Friday, ENVB had a 200-Day SMA of just over $.80.
With so much potential support just below ENVB, there may be little resistance towards a return to its 200-Day SMA!
Now, I'm not saying ENVB is going to run 200+% to any previous high around $.80, but you need to be aware of the potential upside from current levels.
No. 4 ENVB Potential Catalyst - Low Float Profile/Volatility Potential
According to the Yahoo Finance website, ENVB has a relatively low float.
The website reports this profile to have approximately 41.61Mn shares in its float.
Why is that important? It's important on one crucial level. Volatility.
With so few shares available for trading, other potential catalysts (like big news) could spark a vertical move in the short-term.
ENVB Recap - 4 Potential Breakout Catalysts To Know Now
No. 1 - Analyst Coverage And $1.25 Price Target
No. 2 - This Proposed Spin-off Could Create Massive Opportunity
No. 3 - A Recent Hot Streak Has ENVB Trading From A Position Of Potential Strength
No. 4 - Low Float Profile/Volatility Potential
Coverage is officially initiated on ENVB. When time permits, do this: