Analyst Justin Walsh of JonesTrading reiterated a Buy rating on Alto Neuroscience, Inc., retaining the price target of $13.00.
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Justin Walsh has given his Buy rating due to a combination of factors surrounding Alto Neuroscience, Inc.’s strategic advancements and financial positioning. The company has announced an accelerated timeline for its ALTO-207 drug development, targeting treatment-resistant depression, with plans to initiate Phase IIb and Phase III trials by mid-2026 and early 2027, respectively. This accelerated development is supported by a significant $50 million private placement, which is expected to draw increased investor attention and potentially enhance the company’s revenue prospects.
Additionally, the high compliance rates in clinical trials for ALTO-100 and ALTO-101, with 96% and 100% PK positivity, respectively, indicate strong patient adherence to treatment protocols. This adherence is notably higher than typical CNS trials, suggesting an effective trial design and execution strategy by Alto Neuroscience. Furthermore, the integration of clinical biomarkers is anticipated to improve patient selection and optimize the efficacy of the company’s neuropsychiatric agents, with upcoming data readouts expected to validate this approach and boost investor interest.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $16.00 price target.