Alumis Inc., the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on the stock and has a $14.00 price target.
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Mitchell Kapoor has given his Buy rating due to a combination of factors related to Alumis Inc.’s promising developments and financial projections. The completion of patient enrollment in the Phase 2b trial for ESK-001, targeting systemic lupus erythematosus (SLE), is a significant milestone. This trial aims to assess the efficacy of ESK-001, a selective oral TYK2 inhibitor, with top-line data anticipated in the third quarter of 2026. Kapoor highlights the potential success of ESK-001 in meeting the DORIS criteria, which is a benchmark for remission in SLE, and projects peak sales of $2 billion if successful, although he conservatively estimates a 20% probability of approval.
Furthermore, Kapoor’s valuation approach, using a discounted cash flow model, supports a firm value of $1.6 billion and a 12-month price target of $14 per share. This valuation considers the company’s cash position and outstanding shares, along with a 60% probability of approval for ESK-001 in psoriasis. While acknowledging risks such as potential delays in trials and regulatory approvals, Kapoor remains optimistic about the company’s prospects, reiterating the Buy rating based on these strategic developments and financial assessments.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ALMS in relation to earlier this year.