Alumis stock price target cut to $14 by H.C. Wainwright

Published 22/04/2025, 12:48
Alumis stock price target cut to $14 by H.C. Wainwright

Tuesday, H.C. Wainwright analysts adjusted their price target on Alumis Inc (NASDAQ:ALMS) to $14.00 from $15.00, while maintaining a Buy rating on the company’s shares. Currently trading at $4.70, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $15 to $29. The revision follows the announcement made on Monday that Alumis and Acelyrin have amended their previously disclosed merger agreement.

The updated terms of the merger indicate that Acelyrin stockholders will now receive 0.4814 shares of Alumis common stock for each share they hold, slightly increasing their ownership stake in the merged entity. Consequently, Alumis stockholders will own approximately 52% of the combined company, a decrease from the previously expected 55%, while Acelyrin stockholders’ ownership will rise to around 48% from 45%. The deal comes as Alumis, with a market capitalization of $256 million, faces challenging market conditions, having seen its stock decline by 64% over the past six months.

Alumis management has communicated that the amended exchange ratio is a strategic move to present a more attractive proposition for shareholders amidst a challenging economic environment. They also confirmed that there is no formal opposition to the merger from shareholders and that the revised structure is intended to enhance the deal’s value for Acelyrin shareholders.

The merger is anticipated to be finalized in the second quarter of 2025, pending approval from the stockholders of both companies and the fulfillment of other standard closing conditions. The revised agreement received unanimous support from the Boards of both companies. Additionally, stockholders representing roughly 62% of Alumis’s voting common stock and about 24% of Acelyrin’s common stock have agreed to vote in favor of the transaction.

Following the updated merger terms, H.C. Wainwright analysts have modified their financial model, leading to the new 12-month price target of $14. Despite the decrease in the price target, the firm reiterated its Buy rating on Alumis stock. InvestingPro data reveals several additional insights about the company’s financial health and prospects, with 11 more exclusive ProTips available to subscribers.

In other recent news, Alumis Inc. and ACELYRIN, Inc. announced amended terms to their merger agreement, increasing ACELYRIN stockholders’ ownership in the combined entity to approximately 48%. The merger aims to enhance value for ACELYRIN shareholders and is expected to close in the second quarter of 2025, pending stockholder approval. Additionally, Alumis has entered into a strategic partnership with Kaken Pharmaceutical (TADAWUL:2070) Co. to develop and commercialize the TYK2 inhibitor, ESK-001, in Japan. This collaboration could bring Alumis up to $180 million in combined upfront, milestone, and royalty payments. H.C. Wainwright maintains a Buy rating for Alumis, with a $15 target, reflecting confidence in this partnership. Baird also reiterated its Outperform rating and a $17 target for Alumis, following promising Phase 1 study results of their investigational drug A-005. The study demonstrated favorable safety and pharmacokinetics, with plans to initiate a Phase 2 trial in multiple sclerosis in the second half of 2025. These developments reflect significant strategic moves and collaborations for Alumis in the biopharmaceutical sector.

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