Zacks sees Alzheimer's drugmaker Longeveron as massively undervalued

Zacks Small-Cap Research (Zacks SCR) believes that Longeveron, a micro-cap developer of cellular therapies for aging-related diseases, is worth more than five times its current share price. Its outlook has been bolstered after U.S. authorities gave the green light to trials of the company’s Alzheimer’s drug and granted it a special designation. Overall, Alzheimer’s drugs are seen as a highly promising niche for investors.

Zacks SCR values Longeveron at $9.50 per share, more than 400% above its current market price. On Friday, March 21, the stock gained more than 5% to close at $1.85 per share.

Zacks attributes the upbeat valuation to the company’s agreement with the U.S. FDA on a clinical trial for its cell therapy to treat Alzheimer’s disease. Additionally, the regulator has granted Longeveron’s drug Lomocel-B the regenerative medicine advanced therapy (RMAT) designation. This status, awarded to cell therapies designed to treat serious diseases, allows companies to file for accelerated approval. In 2025, out of the 20 requests for RMAT designation, nine were granted, four were rejected, one was withdrawn, and the rest are still pending a decision.

“Laromestrocel is, to the company’s knowledge, the first cellular therapeutic candidate to receive FDA RMAT designation for Alzheimer’s disease,” Longeveron stated. According to the press release, it plans to begin phase II/III clinical trials of the drug in the second half of 2026, provided it secures funding or a partner to sponsor the study.

Zacks SCR believes Longeveron could shake up the market but investors have yet to fully appreciate its potential. Thus, it recommends taking a closer look at the stock.

Longeveron develops cellular therapies for life-threatening and chronic aging-related diseases. Its lead candidate, Lomecel-B, is derived from bone marrow cells of adult donors. The company is testing it across multiple indications, including Alzheimer’s disease, hypoplastic left heart syndrome (a congenital condition characterized by underdevelopment of left-sided heart structures), and aging-related frailty.

For the full-year 2024, Longeveron reported 237% year-over-year revenue growth to $2.4 million, driven by increased demand for its services. The company currently has no commercialized products.

Bloomberg expects investors seeking the next obesity-like market opportunity to closely watch developments around Alzheimer’s treatments in 2025. The reasoning is simple: Only two drugs are currently available for Alzheimer’s — Leqembi from Biogen and Eisai and Eli Lilly’s Kisunla. However, they have significant side effects and are designed only to treat mild forms of the disease.

“The opportunity remains huge,” Chris Eccles, a portfolio manager at AXA Investment Managers, told Bloomberg. “If we get a strong disease-modifying drug and very positive clinical trials, numbers can go back in models and forecasts can be revised upwards quite significantly, quite quickly.”

Longeveron stock is up 7% for the year to date but still down more than 53% over the last 12 months.

According to MarketWatch, all three analysts who cover the name rate it a “buy.” Their average target price of $8.67 per share implies upside of almost 370% versus the last closing price.