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On Tuesday, Avalo Therapeutics Inc. (NASDAQ: NASDAQ:AVTX), currently trading at $7.63, received a positive outlook from Jefferies, as the firm initiated coverage with a Buy rating and set a price target of $23.00. According to InvestingPro data, analyst targets for AVTX range from $18 to $48, suggesting significant upside potential. The clinical stage biotechnology company, which specializes in immunology and inflammation, is currently advancing its lead asset, AVTX-009, an IL-1β antibody. This drug is in Phase 2 clinical trials for the treatment of moderate to severe hidradenitis suppurativa (HS), a chronic skin condition. Topline data from the trial is anticipated in 2026.
The support from Jefferies stems from the company’s experienced management team and the potential of AVTX-009. According to Jefferies, the asset is partly de-risked due to data from lutikizumab, another IL-1β antibody, which suggests that AVTX-009 could show a differentiated profile in treating HS. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 19.96, indicating robust financial flexibility to support its clinical programs. The firm’s analyst believes that Avalo’s approach could stand out in the market for HS treatments.
Avalo’s focus on immunology and inflammation targets significant needs in the healthcare sector, with HS being a condition that can cause considerable discomfort and requires effective treatments. The company’s progress with AVTX-009 could represent a significant step forward for patients suffering from this condition.
The setting of a $23.00 price target by Jefferies reflects confidence in the company’s direction and the commercial potential of its lead drug candidate. With a current market capitalization of $81.43 million and InvestingPro’s Fair Value analysis suggesting the stock is undervalued, investors seeking detailed valuation metrics and additional insights can access more than 10 exclusive ProTips and comprehensive financial analysis through InvestingPro. As Avalo continues its clinical trials, investors and patients alike will be watching closely for the topline data expected in the next few years.
The initiation of coverage by Jefferies is a notable development for Avalo Therapeutics, as it may influence investor perception and contribute to the broader recognition of the company’s work in the biotechnology industry.
In other recent news, Avalo Therapeutics has been the focus of several analyst firms, each highlighting different aspects of the company’s potential. Stifel initiated coverage with a Buy rating and a price target of $36.00, citing the promising data surrounding Avalo’s leading candidate, AVTX-009, for the treatment of hidradenitis suppurativa (HS). The firm emphasized the strategic interest in the HS market and noted Avalo’s strong financial position, with enough capital to continue operations into 2027. Oppenheimer maintained an Outperform rating with a $35.00 price target, reflecting confidence in Avalo’s recent financial report and the ongoing Phase 2 LOTUS trial for AVTX-009, with results anticipated by 2026. Additionally, Piper Sandler assigned an Overweight rating and a $48.00 price target, arguing that Avalo is undervalued given its market capitalization and the high probability of success for AVTX-009’s development. Piper Sandler also highlighted the drug’s differentiated dosing schedules as a potential advantage in the HS treatment landscape. These developments underscore Avalo Therapeutics’ position in the biopharmaceutical sector and the interest in its innovative treatment approaches.
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