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Investing.com - Bernstein raised its price target on Alnylam Pharmaceuticals (NASDAQ:ALNY) to $389.00 from $328.00 on Wednesday, while maintaining an Outperform rating on the stock ahead of the company’s second-quarter earnings report. The stock currently trades at $330.55, near its 52-week high of $333.70, with InvestingPro data showing 5 analysts recently revising their earnings estimates upward.
The research firm cited increased estimates for Amvuttra, Alnylam’s treatment for hereditary transthyretin-mediated amyloidosis, as the primary reason for the higher valuation. Supporting this optimistic outlook, the company maintains an impressive 86.01% gross profit margin and has achieved 17.21% revenue growth over the last twelve months. Bernstein noted that while a strong earnings beat appears already priced into the stock, which has risen 30% since the first-quarter results, further upside could materialize if first-line market share data shows strong trends.
In its analysis, Bernstein adjusted its valuation methodology, lowering the weighted average cost of capital (WACC) to 8.5% from 9% previously, reflecting reduced risk in the product launch and the company’s transition to profitability.
The new price target represents the average of a discounted cash flow model and an enterprise value to revenue multiple of 11 times 2026 revenue, updated from the previous approach that used 8 times 2028 revenue.
Despite the positive outlook, Bernstein acknowledged some longer-term concerns that consensus peak sales estimates might be too high and may not fully account for potential price pressure following the loss of exclusivity for tafamidis, a competing therapy. For deeper insights into Alnylam’s valuation and growth prospects, InvestingPro subscribers can access comprehensive financial health scores and detailed valuation metrics in the Pro Research Report.
In other recent news, Alnylam Pharmaceuticals has been the focus of several analyst updates and financial developments. Jefferies maintained its Buy rating on the company, noting that Amvuttra sales reached $108.5 million in June, contributing to a total of $371 million for the second quarter after adjustments. Truist Securities initiated coverage with a Buy rating, highlighting the strong launch of Amvuttra in TTR-CM as a significant near-term value driver, with expectations that the drug will surpass second-quarter estimates. Raymond (NSE:RYMD) James also assumed coverage with an Outperform rating, citing optimism for Amvuttra’s launch in ATTR-CM.
Cantor Fitzgerald raised its price target for Alnylam Pharmaceuticals to $290, maintaining a Neutral rating while focusing on the performance of Amvuttra ahead of second-quarter earnings. JPMorgan increased its price target to $348, keeping an Overweight rating, as it adjusted forecasts for Amvuttra from 2025 to 2029. These developments underscore the importance of Amvuttra’s performance in shaping Alnylam’s financial outlook and investor sentiment.
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