Analyst Julian Harrison of BTIG maintained a Buy rating on Avalo Therapeutics, retaining the price target of $40.00.
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Julian Harrison has given his Buy rating due to a combination of factors surrounding Avalo Therapeutics’ promising developments and market opportunities. The company’s ongoing Phase 2 LOTUS trial for AVTX-009 in treating hidradenitis suppurativa (HS) is progressing well, with over 75% enrollment completed and full enrollment expected by the end of 2025. This positions Avalo to potentially reveal significant topline data by mid-2026, which could demonstrate AVTX-009’s efficacy in a large and under-penetrated market.
Moreover, Avalo’s AVTX-009 shows several pharmacokinetic and pharmacodynamic advantages over competitors, such as lutikizumab, including higher affinity for IL-1β, superior subcutaneous bioavailability, and a longer half-life, which could support less frequent dosing. The HS market itself is projected to grow significantly, providing ample opportunity for advanced therapies like AVTX-009 to succeed commercially. Additionally, Avalo’s strong cash position, projected to sustain operations into 2028, further supports the company’s ability to advance its clinical programs and capitalize on its market potential.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $15.00 price target.
AVTX’s price has also changed slightly for the past six months – from $8.180 to $8.350, which is a 2.08% increase.