Microcap Firm ZyVersa Therapeutics Shows Promise Despite IPO Volatility, Analyst Initiates With Buy

HC Wainwright initiated coverage on ZyVersa Therapeutics Inc ZVSA with a Buy Rating and a price target of $2.50, noting that ZyVersa has the potential to build significant stockholder value based on its unique value proposition.

ZyVersa completed its IPO and began trading on Nasdaq on December 13, 2022, via a SPAC merger. The shares opened at $14 and closed the session at $7.50. 

After eight more sessions, ZVSA was trading below $2.00 per share. In April, the company announced an $11 million public offering, resulting in stock plummeting over 60%.

Since its IPO, ZyVersa's stock has steadily declined to its current levels. Nevertheless, the company has continued to execute its operations effectively as it transitions into a newly public entity.

The analyst notes that there have been no fundamentally negative developments concerning ZyVersa since its IPO, and HC Wainwright is eagerly anticipating the initial VAR 200 data in diabetic kidney disease patients in 2Q24, which is expected to validate the asset and potentially improve both investor sentiment and ZVSA shares.

ZVSA shares have the potential for substantial triple-digit percentage appreciation, provided the company maintains the necessary funding to achieve one or more positive proof-of-principle data readouts.

Price Action: ZVSA shares are up 5.78% at $0.13 on the last check Friday.