Street Calls of the Week
Investing.com - H.C. Wainwright raised its price target on Avalo Therapeutics Inc. (NASDAQ:AVTX) to $25.00 from $15.00 on Thursday, while maintaining a Buy rating on the stock. The stock has shown strong momentum, gaining over 45% in the past six months, according to InvestingPro data.
The upgrade follows new data from AbbVie’s lutikizumab (IL-1αβ) showing approximately 47% HiSCR75 at Week 16 in biologic-naïve patients, which H.C. Wainwright notes is nearly identical to results in refractory TNF-failures.
The research firm views these results as validation of the IL-1 pathway’s relevance in treating inflammatory conditions, creating an opportunity for Avalo’s AVTX-009 drug candidate, which offers a potential once-monthly dosing advantage.
H.C. Wainwright increased its probability of approval for AVTX-009 to 25% from 20%, noting that even matching lutikizumab’s efficacy ceiling of approximately 45-50% HiSCR75 would be considered a success for Avalo’s treatment.
The firm highlighted Avalo’s approximately $113 million cash runway extending into 2028 and noted the stock is currently trading at "near-zero EV" (enterprise value), suggesting significant potential upside if AVTX-009 delivers positive results. InvestingPro analysis confirms the company’s strong liquidity position, with a current ratio of 12.44 and more cash than debt on its balance sheet. Get access to 10+ additional ProTips and detailed financial metrics with InvestingPro.
In other recent news, Avalo Therapeutics has seen a series of positive developments. Stifel has reiterated its Buy rating on Avalo Therapeutics, maintaining a price target of $36. This decision followed discussions with Avalo’s management about their lead drug candidate, AVTX-009, and its IL-1β selectivity for treating hidradenitis suppurativa. Similarly, Oppenheimer continues to rate Avalo at Outperform, highlighting positive results for lutikizumab in biologic-naïve patients. TD Cowen and Cantor Fitzgerald have both initiated coverage on Avalo, with ratings of Buy and Overweight, respectively, emphasizing the potential of AVTX-009, which is currently in Phase II trials. Additionally, Avalo Therapeutics has appointed Dr. Rita Jain to its Board of Directors. Dr. Jain brings over two decades of experience in biopharmaceutical development to the company. These developments mark a period of strategic growth and positive analyst sentiment for Avalo Therapeutics.
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