Stifel maintains Buy on Vigil Neuroscience, target at $11

Published 13/03/2025, 15:50
Stifel maintains Buy on Vigil Neuroscience, target at $11

On Thursday, Stifel analysts maintained their Buy rating and $11.00 price target for Vigil Neuroscience Inc (NASDAQ:VIGL), expressing continued confidence in the company’s prospects. Currently trading at $2.15, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $11 to $24. The endorsement comes after a review of Vigil’s fourth-quarter 2024 update.

Vigil Neuroscience remains positive about the potential of TREM2 for Alzheimer’s disease (AD), despite a setback experienced by Alector (NASDAQ:ALEC) and AbbVie (NYSE:ABBV) in their own AD research. The company, which maintains a healthy current ratio of 3.72 and holds more cash than debt on its balance sheet, believes its small molecule may offer better brain penetration and a slightly different mechanism to enhance TREM2 function. Additionally, the company’s VG-3927 showed promising phase 1 single ascending dose/multiple ascending dose (SAD/MAD) data earlier in the year. While initial details were general, Vigil plans to present the full data at the Alzheimer’s Disease/Parkinson’s Disease Conference, scheduled from April 1 to April 5, 2025, and aims to progress the 25mg dose into a phase 2 trial in the third quarter of 2025.

Investors have tempered their expectations following the Alector failure, casting some doubt on business development and partnering interest. However, Stifel suggests that investor expectations are currently low, which could imply room for positive reactions to upcoming developments.

Vigil also provided an updated timeline for its iluzanebart 12-month data in patients with Adult-onset Leukoencephalopathy with Axonal Spheroids and Pigmented Glia (ALSP), now expected in the second quarter of 2025, narrowed down from the first half of the year. Should the results be positive, the company intends to seek accelerated approval, though discussions with the FDA on the viability of this pathway are ongoing.

The company’s strategic focus and upcoming milestones appear to set the stage for potential growth, as reflected in Stifel’s reiterated rating and price target. While the stock has shown strong momentum with a 38% year-to-date return, InvestingPro subscribers can access 8 additional key insights about VIGL’s financial health and growth prospects. Get exclusive access to detailed financial metrics and expert analysis to make more informed investment decisions.

In other recent news, Vigil Neuroscience has reported significant advancements in its Alzheimer’s disease treatment, VG-3927. The company announced positive results from its Phase 1 clinical trial, highlighting the drug’s safety, tolerability, and pharmacokinetic profiles. The trial, which included 115 participants, showed no serious adverse events, and all related adverse events were mild or moderate. Following these encouraging results, Vigil Neuroscience plans to move VG-3927 into a Phase 2 trial in the third quarter of 2025. This progression underscores the drug’s potential as a once-daily oral therapy for Alzheimer’s disease. Additionally, the trial demonstrated a robust and dose-dependent reduction of soluble TREM2, a biomarker linked to microglial activation, suggesting sustained target engagement. The company aims to present further data at the AD/PD™ 2025 International Conference on Alzheimer’s and Parkinson’s Disease. These developments reflect Vigil Neuroscience’s ongoing commitment to addressing neurodegenerative diseases.

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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