Oppenheimer sets Alumis stock with Outperform, $32 target

Published 30/01/2025, 13:02
Oppenheimer sets Alumis stock with Outperform, $32 target

On Thursday, Oppenheimer initiated coverage on Alumis Inc (NASDAQ:ALMS) with an Outperform rating and a price target of $32.00. The firm’s analysts highlighted the biopharmaceutical company’s focus on developing oral solutions for inflammatory and autoimmune disorders. Currently valued at $355 million market cap, Alumis’s leadership team, which previously led Principia before its sale to Sanofi (NASDAQ:SNY) for $3.7 billion in 2020, is now advancing a portfolio of TYK2 inhibitors.

Alumis’s lead product candidate, ESK-001, has demonstrated potentially best-in-class activity in a Phase 2 psoriasis (PsO) study. The company is also developing A-005, a central nervous system (CNS) penetrant with potential applications across various neuroinflammatory conditions, including multiple sclerosis (MS), and is preparing to commence Phase 2 studies. According to InvestingPro, the company maintains a strong liquidity position with a current ratio of 11.26, providing runway for its development programs.

The analysts at Oppenheimer expressed confidence in Alumis’s prospects, noting that ESK-001 alone could generate multi-billion dollar revenues if approved for both PsO and systemic lupus erythematosus (SLE). The positive outlook is further supported by the anticipation of transformational clinical data expected in 2026.

Alumis’s stock is currently trading near cash levels at $6.53, down significantly from its 52-week high of $13.53, which, according to Oppenheimer, presents a significant opportunity given the potential of its clinical pipeline. The company’s strategic focus and the upcoming clinical milestones are key factors contributing to the Outperform rating and the $32 price target set by the analysts. InvestingPro analysis suggests the stock is currently undervalued, with analyst targets ranging from $25 to $38. Investors can access more detailed financial insights and 10+ additional ProTips through an InvestingPro subscription.

In other recent news, Alumis Inc. has been making significant progress in its clinical trials and executive appointments. The company recently announced key executive appointments, with Jack Danilkowicz joining as Chief Commercial Officer and Sara Klein being promoted to Chief Legal Officer. Alumis has also reported positive results from a Phase 1 clinical trial for its drug candidate A-005, a TYK2 inhibitor intended to treat multiple sclerosis.

On the clinical front, Alumis has updated the estimated completion dates for its Phase 2 LUMUS clinical trial, which is evaluating the efficacy, safety, and pharmacokinetics of the investigational drug ESK-001 in adult patients with systemic lupus erythematosus. Meanwhile, the company’s lead candidate, ESK-001, is advancing through a Phase 3 clinical program for moderate-to-severe plaque psoriasis.

In terms of analyst coverage, H.C. Wainwright has reaffirmed a Buy rating on Alumis, despite reducing its price target to $26 from $30. Baird has initiated coverage on Alumis with an Outperform rating and a $25 price target. These recent developments highlight Alumis’s ongoing efforts in the biopharmaceutical space.

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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