Analyst Andrew Fein of H.C. Wainwright reiterated a Buy rating on Alector, reducing the price target to $5.00.
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Andrew Fein’s rating is based on several strategic factors that highlight Alector’s potential in the biotechnology sector. The recent INFRONT-3 data suggests that simply raising progranulin levels may not be sufficient to slow disease progression in FTD, but this does not negate the potential of progranulin biology in broader neurodegenerative conditions like Alzheimer’s disease. The upcoming Phase 2 PROGRESS-AD trial is a significant catalyst, as it could validate the role of progranulin in Alzheimer’s, a disease with different characteristics and standardized biomarkers that may lead to clinically meaningful outcomes.
Additionally, Alector’s ABC platform is seen as a long-term value driver due to its innovative transferrin receptor binding and tunability, which have shown promising results in brain uptake and safety in preclinical studies. Although not yet factored into the current valuation, early clinical proof-of-concept data from the ABC programs could provide substantial upside potential, targeting large indications and offering multiple paths to shareholder value. These elements combined justify the Buy rating, despite the reduction in price target to $5, reflecting a cautious yet optimistic outlook on Alector’s future prospects.