Alto Neuroscience stock price target raised by Baird to $16 on TRD drug progress

Investing.com - Baird raised its price target on Alto Neuroscience (NYSE:ANRO) to $16.00 from $10.00 on Monday, maintaining an Outperform rating on the biotech company’s shares. The stock, currently trading at $10.37, has shown remarkable momentum with a 169% gain over the past six months, according to InvestingPro data.

The upgrade follows Alto’s announcement of a positive FDA update and a subsequent $50 million PIPE (Private Investment in Public Equity) financing, which strengthens the company’s financial position. InvestingPro analysis shows the company maintains a healthy current ratio of 18.43, with liquid assets exceeding short-term obligations, though it’s currently burning through cash rapidly.

Baird expressed encouragement regarding the additional liquidity and Alto’s streamlined plans to advance its ALTO-207 drug candidate to the pivotal stage in treatment-resistant depression (TRD), with management now anticipating the initiation of a Phase 3 TRD study in early 2027. With analyst targets ranging from $4 to $15, and a strong consensus recommendation of 1.33, the market appears optimistic about Alto’s prospects. Discover 6 more exclusive InvestingPro Tips for ANRO to make informed investment decisions.

The research firm also highlighted positive compliance data from Alto’s other clinical programs, noting that 96-100% of patients met pharmacokinetic positivity thresholds in the ALTO-100 BPD and ALTO-101 CIAS Phase 2b studies, indicating effective mitigation of patient compliance risk following earlier issues in the ALTO-100 MDD Phase 2b trial.

The price target increase specifically reflects progress with ALTO-207, Alto’s drug candidate for treatment-resistant depression, according to Baird’s analysis.

In other recent news, Alto Neuroscience has announced plans to accelerate the development of its treatment for treatment-resistant depression (TRD), ALTO-207, following a successful meeting with the FDA. The company has secured $50 million in private placement financing, led by Perceptive Advisors, to support this initiative. The funds will be used to advance a Phase 2b study by mid-2026, with a Phase 3 study planned for early 2027. Additionally, Alto Neuroscience received FDA Fast Track designation for its drug candidate ALTO-101, aimed at treating cognitive impairment associated with schizophrenia. This designation could facilitate more frequent meetings with the FDA and potential accelerated approval. In other developments, H.C. Wainwright reiterated its Buy rating for Alto Neuroscience, noting the company’s precision psychiatry approach. The firm maintains a $10.00 price target, reflecting confidence in Alto’s innovative methods. These recent developments indicate significant progress and investment in Alto’s drug development pipeline.

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