Citi initiates Amylyx stock with buy rating on promising pipeline

Published 17/06/2025, 11:06
Citi initiates Amylyx stock with buy rating on promising pipeline

Citi initiated coverage on Amylyx Pharmaceuticals inc. (NASDAQ: AMLX) with a buy rating and a $12.00 price target on Tuesday, representing significant upside from the current price of $5.44. According to InvestingPro data, analyst targets range from $8 to $16, with the stock currently fairly valued based on InvestingPro’s Fair Value model. The investment bank cited the company’s diverse pipeline spanning multiple indications with significant unmet medical needs.

The research firm highlighted three key assets in Amylyx’s portfolio that span four indications ranging from Phase 1 to Phase 3 clinical studies. These include avexitide, a GLP-1 antagonist for post-bariatric hypoglycemia; AMX0035 for both Wolfram syndrome and progressive supranuclear palsy; and AMX0114 for amyotrophic lateral sclerosis. With a market cap of $485 million and a strong financial health score rated as "GOOD" by InvestingPro, the company maintains a robust current ratio of 12.05, indicating solid short-term liquidity.

Citi noted several upcoming catalysts throughout 2025 and into the first half of 2026 that provide "optionality at various timepoints." The firm expressed confidence in the clear, well-established clinical endpoints for the ongoing Phase 2 and later studies, which it believes provide a direct indication of probability of success and approval. The stock has demonstrated strong momentum, with a 229.7% return over the past year and a defensive beta of -0.59.

The research note emphasized strong intellectual property protection across the portfolio. Avexitide holds orphan drug designation from the FDA and has U.S. patent rights through 2037, while AMX0035 has orphan drug designation for Wolfram syndrome with patent protection until 2040.

AMX0114, the company’s ALS treatment candidate, received Fast Track designation in June 2025 and could have composition of matter protection through 2043 via its pending patent, according to Citi’s analysis.

In other recent news, Amylyx Pharmaceuticals Inc. has reported significant developments in its clinical trials and regulatory advancements. The U.S. Food and Drug Administration (FDA) has granted Fast Track designation to Amylyx’s investigational drug AMX0114, aimed at treating amyotrophic lateral sclerosis (ALS). This designation is intended to expedite the development and review of treatments addressing serious conditions with unmet medical needs. Additionally, Amylyx announced positive 48-week data from its Phase 2 HELIOS trial for AMX0035, showing promise in treating Wolfram syndrome, a rare neurodegenerative disorder.

H.C. Wainwright has raised its price target for Amylyx to $16, citing optimism around the Phase 3 LUCIDITY trial for avexitide, which is being developed for post-bariatric hypoglycemia (PBH). The firm maintained its Buy rating, highlighting the unmet medical need in the PBH market. Meanwhile, TD Cowen initiated coverage of Amylyx with a Buy rating, expressing confidence in the company’s lead asset avexitide and its potential success in Phase III trials for PBH. Analysts emphasized that the current valuation of Amylyx shares may not fully reflect the drug’s prospects.

Amylyx’s approach to targeting neurological disorders has garnered attention, with the company’s pipeline, including AMX0114 for ALS and AMX0035 for Wolfram syndrome, showing potential for significant advancements. The company’s Chief Medical (TASE:BLWV) Officer, Camille L. Bedrosian, MD, expressed commitment to advancing these treatments efficiently, with early cohort data from the ongoing Phase 1 LUMINA trial for AMX0114 expected later this year. These recent developments underscore Amylyx’s focus on addressing diseases with high unmet needs.

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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