BTIG maintains Aldeyra stock Buy rating, $11 target

Published 17/03/2025, 11:06
BTIG maintains Aldeyra stock Buy rating, $11 target

On Monday, BTIG analysts reiterated their Buy rating and $11.00 price target for Aldeyra Therapeutics (NASDAQ:ALDX) shares, adding to the strong consensus among analysts who have set targets ranging from $8 to $12. The stock has shown remarkable momentum, delivering a 147% return over the past year. The firm’s positive outlook is based on the potential of Reproxalap, Aldeyra’s drug for dry eye disease (DED), which they believe has unique and rapid effectiveness in its class. According to InvestingPro, the company maintains a healthy financial position with more cash than debt on its balance sheet. The analysts expect a successful launch, supported by the marketing prowess of AbbVie (NYSE:ABBV), which has not been rated by BTIG.

The analysts mentioned the upcoming Prescription Drug User Fee Act (PDUFA) date in April as a significant milestone for Aldeyra. With a current market capitalization of $413 million and a strong current ratio of 5.59, the company appears well-positioned to support its regulatory initiatives. They noted that the company’s management has been active at investment conferences, a sign which they interpret as indicative of non-tense discussions with the FDA. This observation comes after the FDA previously issued a Complete Response Letter (CRL) for Reproxalap, which the analysts found surprising given the positive trial results for the drug’s effectiveness in treating DED.

Despite a previous trial for DED symptoms that had a co-primary endpoint yielding mixed results, the analysts believe that the necessary steps to address this have been completed. Looking ahead, BTIG anticipates that Aldeyra will shift focus towards systemic reactive aldehyde species (RASP) treatments, with funding from the Reproxalap franchise. The company has released data implicating RASPs in various inflammatory diseases and is now developing second-generation molecules.

The analysts also highlighted Aldeyra’s progress with ADX-248, an oral RASP inhibitor designed for once-daily dosing. A Phase 1 study in healthy volunteers (HVs) is currently underway, with no consistent adverse events (AEs) reported and target drug levels achieved at the initial dose. Aldeyra plans to present Phase 1 data in the second half of 2025 and commence a randomized trial for atopic dermatitis soon after.

The BTIG analysts’ continued endorsement of Aldeyra stock comes with the expectation of significant developments in the company’s pipeline, particularly as it approaches the April PDUFA date and expands into systemic inflammatory disease treatments. Currently trading near its 52-week high of $7.20, the stock has demonstrated strong momentum with a 38% gain year-to-date. For deeper insights into Aldeyra’s financial health and growth potential, including 8 additional exclusive ProTips, visit InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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