Street Calls of the Week
Investing.com - H.C. Wainwright raised its price target on Alto Neuroscience (NYSE:ANRO) to $50.00 from $10.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $11.18, with analyst targets ranging from $4 to $16.
The significant price target increase follows Alto’s October 20 announcement of plans to accelerate development of ALTO-207 for treatment-resistant depression (TRD), supported by a $50 million private placement financing. The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio of 18.43.
The company reported a productive meeting with the FDA that established groundwork for a Phase 3 trial by early 2027, ahead of top-line readout from the planned Phase 2b trial.
In a separate development on October 3, the FDA granted Fast Track designation to Alto’s ALTO-101 for the treatment of cognitive impairment associated with schizophrenia (CIAS).
H.C. Wainwright cited the incorporation of potential value from ALTO-207 in TRD as the key driver behind its price target increase, while expressing increased confidence in Alto’s pipeline and leadership in precision psychiatry.
In other recent news, Alto Neuroscience has made significant strides in its drug development efforts. The company announced a successful meeting with the FDA, which will expedite the development of its treatment-resistant depression drug, ALTO-207. This development is supported by $50 million in private placement financing from investors like Perceptive Advisors, Commodore Capital, and others. The funds will be used to accelerate the drug’s progress, with plans to begin a Phase 2b study by mid-2026 and a Phase 3 trial by early 2027.
Additionally, Baird has raised its price target for Alto Neuroscience to $16, maintaining an Outperform rating, following the positive FDA update and financial boost. In another development, the FDA granted Fast Track designation to Alto’s drug candidate ALTO-101 for treating cognitive impairment associated with schizophrenia. This designation aims to speed up the development and review process for drugs addressing serious conditions with unmet needs. These recent developments highlight Alto Neuroscience’s active engagement in advancing its drug pipeline.
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