Aldeyra Therapeutics: Promising Pipeline and Strategic Focus Justify Buy Rating Despite FDA Concerns

Aldeyra Therapeutics (ALDX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Shrader from BTIG maintained a Buy rating on the stock and has a $9.00 price target.

Thomas Shrader has given his Buy rating due to a combination of factors that highlight the potential of Aldeyra Therapeutics’ pipeline and strategic focus. Despite the FDA’s conservative stance on Reproxalap, a drug aimed at treating dry eye disease (DED), Shrader remains optimistic about its future approval. The company is nearing completion of additional trials that could address the FDA’s concerns, and a meeting with the FDA is anticipated soon, with a resubmission planned for mid-2025.
Moreover, Aldeyra’s focus on next-generation RASP modulators for systemic diseases presents a promising opportunity. The company’s pipeline includes treatments for conditions such as atopic dermatitis, alcoholic hepatitis, and non-opiate analgesia, all showing significant improvements in clinical trials. These developments, along with a valuation based on a discounted cash flow analysis, support Shrader’s Buy rating, indicating confidence in Aldeyra’s long-term growth potential.

According to TipRanks, Shrader is an analyst with an average return of -1.5% and a 32.78% success rate. Shrader covers the Healthcare sector, focusing on stocks such as Arcturus Therapeutics, Denali Therapeutics, and Inmune Bio.

In another report released on April 4, Jefferies also maintained a Buy rating on the stock with a $6.00 price target.