Stifel reiterates Buy rating on Avalo Therapeutics stock, maintains $36 target

Published 22/07/2025, 14:26
Stifel reiterates Buy rating on Avalo Therapeutics stock, maintains $36 target

Investing.com - Stifel maintained its Buy rating and $36.00 price target on Avalo Therapeutics Inc. (NASDAQ:AVTX), representing significant upside from the current price of $6.73, following a virtual non-deal roadshow with the company’s management team. According to InvestingPro data, analyst targets range from $15 to $48, with the stock showing strong momentum, gaining over 40% in the past week.

The research firm’s decision came after discussions with Avalo’s CEO Garry Neil, CMO Mittie Doyle, and CFO Chris Sullivan, which covered the mechanistic rationale for AVTX-009’s IL-1β selectivity in Hidradenitis Suppurativa (HS). The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.

Avalo’s management expressed confidence in data supporting IL-1β’s importance in HS disease pathology, suggesting this inhibition is the key driver of Lutikizumab’s success despite the drug targeting both IL-1a and IL-1β.

The company reported that enrollment for its Phase 2 LOTUS study remains on track to deliver data by mid-2026, despite significant competition in the HS development space, with management emphasizing site selection and training as key focus areas.

While Hidradenitis Suppurativa remains Avalo’s primary focus, the company sees potential for first-in-class indication opportunities beyond this initial application.

In other recent news, Avalo Therapeutics has seen significant developments. The company announced the appointment of Dr. Rita Jain to its Board of Directors. Dr. Jain brings over two decades of leadership experience in biopharmaceutical development, having recently served as Executive Vice President and Chief Medical (TASE:BLWV) Officer at ChemoCentryx (NASDAQ:CCXI). Additionally, analysts at H.C. Wainwright upgraded Avalo Therapeutics’ stock from a Neutral rating to a Buy rating. They have set a new 12-month price target of $15.00 for the company. These updates indicate active changes within Avalo Therapeutics, highlighting both leadership and strategic evaluations by analysts.

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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