H.C. Wainwright maintains buy rating on Alto Neuroscience stock

Published 04/06/2025, 12:38
H.C. Wainwright maintains buy rating on Alto Neuroscience stock

On Tuesday, H.C. Wainwright analysts reaffirmed their Buy rating for Alto Neuroscience stock (NYSE: ANRO) and maintained a price target of $10, representing a significant upside from the current price of $2.63. This decision follows Alto’s announcement of acquiring ALTO-207, previously known as CTC-501. The acquisition involves a fixed-dose combination of pramipexole and ondansetron, which has shown promising results in Phase 2a trials for major depressive disorder (MDD). According to InvestingPro data, analyst consensus remains bullish, with price targets ranging from $4 to $18.

Alto Neuroscience’s recent acquisition is seen as a strategic move to bolster its biomarker-driven platform. With a market capitalization of $71.2 million, the company maintains a strong financial position, as InvestingPro data shows it holds more cash than debt and maintains a healthy current ratio of 22.53. The company aims to enhance its clinical pipeline with ALTO-207, addressing treatment-resistant depression (TRD), a significant area of unmet need in psychiatry. The acquisition is supported by strong real-world and clinical evidence of pramipexole’s efficacy in TRD.

Alto Neuroscience plans to initiate a potentially pivotal Phase 2b trial for ALTO-207 in the first half of 2026. The company anticipates releasing topline data from this trial in 2027. The acquisition is expected to complement Alto’s existing platform while maintaining its cash runway through 2028.

The analysts at H.C. Wainwright expressed confidence in Alto’s strategic direction, highlighting the potential impact of ALTO-207 on the company’s clinical pipeline and overall growth. The reiterated Buy rating and $10 price target reflect the firm’s positive outlook on Alto’s future prospects in the psychiatric treatment landscape.

In other recent news, Alto Neuroscience has made significant strides in its clinical trials and strategic acquisitions. The company announced the acquisition of a portfolio of dopamine agonist drug combinations from Chase Therapeutics Corporation, including ALTO-207, aimed at treating treatment-resistant depression (TRD). The drug has successfully completed a Phase 2a study, showing significant improvement in depression symptoms compared to placebo, and a Phase 2b trial is planned for mid-2026. Additionally, Alto Neuroscience reported progress at the American Society of Clinical Psychopharmacology Annual Meeting regarding its drug ALTO-300 for major depressive disorder (MDD). The 25mg dose of ALTO-300 demonstrated a favorable tolerability profile without significant liver function test elevations, unlike the higher 50mg dose. The ongoing Phase 2b trial has not reported any liver enzyme elevations that required stopping treatment. The company has also linked ALTO-300 to an EEG biomarker, which may help in selecting patients likely to respond to the treatment. These developments are part of Alto Neuroscience’s broader efforts in precision medicine for neuropsychiatric disorders.

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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