Baird raises Alto Neuroscience stock price target to $22 on clinical progress

Investing.com - Baird has raised its price target on Alto Neuroscience (NYSE:ANRO) to $22.00 from $16.00 while maintaining an Outperform rating on the stock. The new target represents significant upside from the current price of $14.20, with Alto shares already posting an impressive 27.58% gain over the past week.

The research firm cited clinical progress and a reevaluation of Alto’s program values as the basis for the increased price target following the company’s third-quarter 2025 financial results. According to InvestingPro data, Alto currently holds more cash than debt on its balance sheet, providing runway for its clinical programs despite not being profitable over the last twelve months.

Baird noted that enrollment continues in Alto’s ALTO-101 CIAS Phase 2 and ALTO-300 MDD Phase 2b clinical trials, with the ALTO-207 program on track to begin Phase 2b trials in mid-2026.

The firm highlighted the upcoming first-quarter 2026 readout of ALTO-101 as an "underrated catalyst" ahead of additional readouts planned for mid-2026 and the second half of 2026.

Alto Neuroscience ’s clinical pipeline includes programs targeting major depressive disorder (MDD) and bipolar disorder (BPD), with multiple data readouts expected throughout 2026.

In other recent news, Alto Neuroscience has announced plans to accelerate the development of its treatment-resistant depression drug, ALTO-207, following a successful meeting with the FDA. The company has secured $50 million in private placement financing led by Perceptive Advisors, with participation from Commodore Capital, Vestal Point Capital, Vivo Capital, and other biotech investors. This funding will support the initiation of a Phase 2b study by mid-2026 and a Phase 3 trial by early 2027. Analysts have responded positively to these developments; H.C. Wainwright raised its price target for Alto Neuroscience to $50, maintaining a Buy rating. Similarly, Baird increased its price target to $16, maintaining an Outperform rating, following the FDA update and financing announcement. These updates reflect a strengthened financial position for Alto Neuroscience and a clear path forward for its ALTO-207 program.

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