10 Best Short Squeeze Stocks to Buy According to Analysts

4. CervoMed Inc. (NASDAQ:CRVO)

Short % of Float: 16.91%

Number of Hedge Fund Holders: 3

Analysts Upside Potential: 132.9%

CervoMed Inc. (NASDAQ:CRVO), based in Boston, Massachusetts, is a clinical-stage biotechnology company. The focus of the company is laid on developing treatments for neurodegenerative diseases such as Alzheimer’s and Parkinson’s. Its drug candidates focus on reducing neuroinflammation and improving cognitive function. The company handles itself against competitors with its precision medicine approach that targets the root causes of cognitive decline.

With a short interest of 16.91%, CervoMed Inc. (NASDAQ:CRVO) is attracting attention as a potential short-squeeze candidate. The short percent of float rose after the company announced positive results for its Phase 2b clinical study of Neflamapimod in patients with dementia with Lewy bodies. The company’s price initially decreased, as it reported an EBITDA of -$4.75 million by September 30, 2024. However, the gross margin remained positive. The critical milestone set by the new positive results on its potential leading candidate, neflamapimod, increases its positive outlook among analysts.

Analyst sentiment remains bullish, even though only three hedge funds held positions in the company, as per Insider Monkey’s database of Q4 2024. The stock carries a Buy rating, with a remarkable upside potential of 132.92%, as analysts set a one-year price target of $15. With the current price being $6.44, the stock presents an appealing opportunity for investors banking on short-covering rallies.