Goldman Sachs resumes Amylyx stock coverage with Buy rating on avexitide potential

Investing.com - Goldman Sachs has resumed coverage of Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) with a Buy rating and a $10.00 price target. The stock, currently trading at $7.24, has shown remarkable momentum with a 250% return over the past year. According to InvestingPro analysis, AMLX appears slightly overvalued at current levels.

The investment bank’s positive outlook centers on avexitide, a treatment for post-bariatric surgery hypoglycemia (PBH) that Amylyx acquired in 2024. Goldman Sachs considers the asset "highly de-risked" following multiple statistically significant Phase 2 studies. The company, with a market capitalization of $645 million, maintains a strong financial position with an impressive current ratio of 12.05 and minimal debt-to-equity of 0.01.

Goldman Sachs estimates avexitide could generate over $1 billion in peak sales in the U.S. alone, addressing what its key opinion leader checks reveal is "a meaningful unmet need" in the PBH patient population.

The firm expects investors will begin recognizing this market opportunity as Amylyx approaches Phase 3 results in the first half of 2026, with likely approval following in 2027.

While Goldman Sachs acknowledges other pipeline assets offer "upside optionality," it views them as secondary to the investment thesis, noting upcoming Phase 3 data in primary supranuclear palsy represents a "high-risk/high-reward event" where program discontinuation would likely be well-received by investors due to reduced R&D spending.

In other recent news, Amylyx Pharmaceuticals Inc. has been the focus of several notable developments. The company announced that the U.S. Food and Drug Administration (FDA) has granted Fast Track designation to its investigational ALS drug, AMX0114, which aims to expedite the development and review process for this promising treatment. Analysts at Citi have initiated coverage on Amylyx with a Buy rating, highlighting the company’s diverse pipeline and strong intellectual property protection, particularly for AMX0114, which has patent protection through 2043. Meanwhile, H.C. Wainwright has reiterated its Buy rating on Amylyx, raising the stock’s price target to $16, citing optimism around the upcoming data release from the LUCIDITY trial for AMX0114 in ALS.

Additionally, TD Cowen has started coverage on Amylyx with a Buy rating, expressing optimism for avexitide, another key asset in Amylyx’s portfolio, which is being developed for post-bariatric hypoglycemia. The analyst’s confidence is based on positive Phase II data and the potential for success in Phase III trials. The firm’s research into patient experiences with post-bariatric hypoglycemia underscores the significant unmet medical need that avexitide aims to address. These developments reflect a growing confidence among analysts in Amylyx’s pipeline and its potential impact on the company’s growth.

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