Aligos Therapeutics stock reaffirmed Buy at H.C. Wainwright

Investing.com - H.C. Wainwright reiterated its Buy rating and $50.00 price target on Aligos Therapeutics Inc. (NASDAQ:ALGS) on Thursday. Trading at $9.99, the stock appears undervalued according to InvestingPro Fair Value metrics, with analyst targets ranging from $36 to $175.

The research firm maintained its positive outlook on the company following Roche’s September 18 announcement that it would acquire 89bio for up to approximately $3.5 billion, a deal centered on pegozafermin, an FGF21 analogue currently in Phase 3 development. InvestingPro data shows Aligos maintains a strong balance sheet with more cash than debt and a healthy current ratio of 6.31.

H.C. Wainwright believes this transaction strengthens the case that Aligos will be able to secure a partnership for its thyroid hormone receptor-β (THR-β) agonist, ALG-055009.

The firm noted that ALG-055009 has demonstrated statistically significant liver fat reduction and favorable lipid effects, including reductions in lipoprotein(a), in clinical studies.

H.C. Wainwright also highlighted that the compound shows compatibility with GLP-1 therapies without the pharmacokinetic or gastrointestinal liabilities observed with first-generation agents.

In other recent news, Aligos Therapeutics has started dosing in its Phase 2 B-SUPREME study for the investigational compound ALG-000184, aimed at treating chronic hepatitis B virus (HBV) infection. This randomized, double-blind study will involve approximately 200 untreated adult subjects and will continue over 48 weeks to evaluate safety, efficacy, and various biomarkers. Additionally, H.C. Wainwright has initiated coverage of Aligos Therapeutics with a Buy rating, citing the potential of ALG-000184 to become the new standard-of-care for chronic HBV suppression. The firm set a price target of $50.00, highlighting the drug’s potential as an oral backbone for future cure regimens. In corporate developments, Aligos has appointed Ramón Polo as Senior Vice President, Head of Global Regulatory Affairs. Polo brings extensive experience from his previous roles at Shionogi Inc. and Johnson & Johnson, where he was involved in the development strategies for several infectious diseases. These recent developments mark significant progress for Aligos Therapeutics in its efforts to address HBV treatment.

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