Morgan Stanley analyst Sean Laaman maintained a Sell rating on Alector today and set a price target of $0.75.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Sean Laaman has given his Sell rating due to a combination of factors affecting Alector’s strategic outlook. The failure of the Phase 3 INFRONT-3 trial for latozinemab to show clinical benefits in cognitive improvement has led Alector to shift its focus towards its Alector Brain Carrier platform. Despite promising preclinical data, the lack of clinical efficacy raises concerns about the viability of their current therapeutic targets, particularly regarding the localization of PGRN.
Furthermore, the company is undergoing significant cost-cutting measures, including a substantial workforce reduction, which indicates financial strain. Although Alector is incorporating AL101 for Alzheimer’s disease into its model, the projections are heavily discounted, reflecting uncertainty and limited confidence in future revenue streams. Consequently, these strategic and financial challenges underpin the Sell rating, as the company’s prospects appear constrained in the near term.
According to TipRanks, Laaman is a 4-star analyst with an average return of 9.6% and a 64.65% success rate. Laaman covers the Healthcare sector, focusing on stocks such as Jazz Pharmaceuticals, Neurocrine, and ACADIA Pharmaceuticals.
In another report released on November 7, Bank of America Securities also reiterated a Sell rating on the stock with a $1.00 price target.