What the bad jobs report means for markets
On Friday, Stifel analysts maintained a positive outlook on Altimmune shares (NASDAQ:ALT), reiterating a Buy rating and an $18.00 price target. According to InvestingPro data, analyst targets for the stock range from $12 to $28, suggesting significant upside potential from the current price of $5.56. During Altimmune’s recent R&D Day, the company presented a comprehensive strategy for its product pemvidutide, aimed at addressing various aspects of liver disease and related comorbidities across the cardiometabolic spectrum.
The strategy outlined by Altimmune includes tackling obesity-related nonalcoholic steatohepatitis (NASH), Alcohol Use Disorder (AUD), and Alcoholic Liver Disease (ALD), conditions affecting millions of patients who currently have limited treatment options. With a market capitalization of $424 million, Altimmune maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations. According to Stifel analysts, the addition of AUD and ALD to the pemvidutide treatment spectrum could benefit an estimated 28.1 million and 6.6 million patients, respectively.
Key opinion leaders (KOLs) at the event expressed strong support for the dual approach of pemvidutide, which differs from existing NASH treatments and incretins. They highlighted the potential for pemvidutide to prioritize patient outcomes by rapidly improving liver steatosis, fibrosis, and markers while addressing the root causes of liver diseases.
Stifel’s optimism is further bolstered by the clear liver benefits demonstrated in multiple trials of pemvidutide. The firm is looking forward to the upcoming IMPACT trial results expected in the second quarter of 2025 and the potential expansion pathways that Altimmune has developed, all of which significantly overlap within their target indications.
In summary, Stifel’s analysis supports a strong investment case for Altimmune, with a reiterated Buy rating and a steady price target of $18, as the company progresses towards key clinical milestones and expands its treatment offerings for various liver diseases. The stock has experienced a challenging period, down 48% over the past year, and currently trades near its 52-week low. Investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research report.
In other recent news, Altimmune reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -0.33, slightly beating the forecasted -0.34. However, revenue was significantly below expectations, coming in at $5 million compared to the forecasted $714 million. Despite the revenue shortfall, Altimmune’s stock showed resilience, reflecting investor optimism about the company’s future prospects. Analyst firms such as H.C. Wainwright and Citizens JMP have maintained positive outlooks on Altimmune, with H.C. Wainwright reaffirming a Buy rating and a $12 price target, and Citizens JMP reiterating a Market Outperform rating with a $25 target. The focus remains on Altimmune’s drug pemvidutide, which is expected to begin Phase 2 trials soon and has shown promise in treating conditions like metabolic dysfunction-associated steatohepatitis (MASH). The company has a strong cash position of $132 million, providing a financial runway into the second half of 2026. This financial stability is crucial as Altimmune continues to invest in its pipeline, particularly in the development of pemvidutide for MASH and related disorders. Upcoming milestones include a Virtual R&D Day and the anticipated Phase 2b trial readout for pemvidutide in the second quarter of 2025.
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