Mizuho raises Amylyx Pharmaceuticals stock price target to $12 on improved outlook

Investing.com - Mizuho has raised its price target on Amylyx Pharmaceuticals stock (NASDAQ:AMLX) to $12.00 from $8.00 while maintaining an Outperform rating. The $713 million market cap company, currently trading at $9.16, maintains a Strong Buy consensus among analysts with targets ranging from $8 to $17.

The price target increase is primarily based on an improved outlook for Amylyx’s lead asset avexitide in post-bariatric hypoglycemia (PBH). Mizuho has increased its market share assumption for avexitide to 45% from the previous 35%. According to InvestingPro analysis, the company maintains a FAIR Financial Health Score of 2.49, despite negative earnings.

As a result of the revised market share projection, Mizuho’s peak risk-unadjusted sales forecasts for avexitide have increased to $1.1 billion from $862 million previously, while risk-adjusted sales forecasts have risen to $665 million from $517 million.

Mizuho initially upgraded Amylyx to Outperform from Neutral in April following a comprehensive assessment of avexitide’s market potential. Since that upgrade, Amylyx shares have gained approximately 165%, significantly outperforming the 23% rise in the SPDR S&P Biotech ETF.

The investment firm sees approximately 30% additional upside potential for Amylyx shares from Tuesday’s closing price, with an upcoming interim Phase 2/3 data readout for AMX0035 in progressive supranuclear palsy (PSP) representing a potential near-term catalyst. Get deeper insights and exclusive analysis on AMLX through InvestingPro’s comprehensive research reports, available for 1,400+ top US stocks.

In other recent news, Amylyx Pharmaceuticals has been the focus of several analyst reports, highlighting the company’s developments in its drug pipeline. TD Cowen reiterated a Buy rating on the company, emphasizing the potential of avexitide for treating post-bariatric hypoglycemia, based on new analyses from its Phase II program. Citi also maintained its Buy rating and $12.00 price target after a key opinion leader event that presented data on avexitide, a GLP-1 receptor antagonist. Goldman Sachs resumed coverage with a Buy rating and a $10.00 price target, noting the de-risked nature of avexitide following several successful Phase 2 studies.

Citi initiated coverage on Amylyx with a Buy rating, citing the company’s diverse pipeline, which includes avexitide, AMX0035 for Wolfram syndrome and progressive supranuclear palsy, and AMX0114 for amyotrophic lateral sclerosis. H.C. Wainwright reiterated its Buy rating and $16.00 price target as Amylyx approaches the first data release from its LUCIDITY trial testing AMX0014 in ALS. These developments reflect strong analyst confidence in Amylyx’s potential, with multiple promising assets in its portfolio.

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