Canaccord maintains $390 target on Alnylam stock with Buy rating

On Monday, Canaccord Genuity reiterated its Buy rating and $390.00 price target for Alnylam Pharmaceuticals (NASDAQ:ALNY), following the recent approval of the company’s drug Amvuttra. According to InvestingPro data, analyst targets for ALNY range from $206 to $500, with the stock currently trading near its Fair Value. Analysts at Canaccord expressed increased confidence in the revenue potential of Amvuttra, particularly in the treatment of ATTR-CM, a heart condition caused by transthyretin-mediated amyloidosis.

The affirmation of the stock’s potential comes after the drug’s approval two weeks prior and subsequent presentations at the American College of Cardiology ( ACC (NSE:ACC)). The analysts addressed questions regarding their optimistic revenue forecasts for Alnylam’s product, which are nearly double the consensus estimates for 2030. The company’s strong financial position is evident in its impressive 85.62% gross profit margin and healthy current ratio of 2.78, as reported by InvestingPro. Canaccord’s projection stands at $11.8 billion in revenue by 2030, in contrast to the consensus, which was initially $4.8 billion and has since been adjusted to $5.8 billion.

Canaccord’s analysts highlighted their belief that the market is underestimating Amvuttra’s revenue potential. They suggest that increasing diagnosis rates, treatment adoption, and market penetration for ATTR-CM will lead to significant long-term returns that exceed current consensus estimates. Their analysis and confidence are based on data and insights gathered from the ACC event, where they had the opportunity to delve deeper into the drug’s performance and market dynamics.

The firm’s report detailed key assumptions of their revenue model for Alnylam’s Amvuttra, providing additional context from their experience at the ACC. They emphasized the positive reception and data surrounding the treatment of ATTR, which reinforced their already bullish stance.

In conclusion, Canaccord Genuity has maintained a strong Buy recommendation for Alnylam Pharmaceuticals, anticipating that the company’s Amvuttra will perform better financially than the market currently expects, particularly in the domain of ATTR-CM treatment. The analysts believe that the drug’s market penetration and treatment rates will lead to substantial long-term upside, supporting their high price target for the stock. With a robust revenue growth of 22.97% in the last twelve months and analysts predicting profitability this year, the $33.94 billion market cap company shows promising potential. For deeper insights into ALNY’s financial health (rated GOOD by InvestingPro) and access to 8 additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Alnylam Pharmaceuticals has been at the center of several significant developments. The company recently received U.S. approval for Amvuttra, intended for treating transthyretin amyloid cardiomyopathy (ATTR-CM), which is expected to be a major revenue driver. Stifel analysts increased their price target for Alnylam to $345 following the FDA approval of vutrisiran for ATTR-cardiomyopathy, highlighting the drug’s market potential and premium pricing strategy. Scotiabank (TSX:BNS) also adjusted its price target to $342, citing the approvals of Amvuttra and Qfitlia, with the latter expected to generate substantial revenue by 2034. Meanwhile, H.C. Wainwright reaffirmed a $500 price target, expressing confidence in Alnylam’s strategic direction and financial outlook, particularly with the anticipated success of AMVUTTRA.

Redburn-Atlantic initiated coverage with a Buy rating and a $353 price target, noting Alnylam’s pioneering role in siRNA therapies and the promising launch of Amvuttra. Alnylam’s management discussed the premium pricing and reimbursement dynamics for vutrisiran, expressing optimism about its market penetration despite initial uptake challenges. The company’s revenue guidance for 2025 is set between $1.60 billion and $1.73 billion, aligning with some analysts’ estimates and slightly above consensus. These developments underscore Alnylam’s ongoing efforts to expand its product portfolio and achieve sustainable profitability.

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