Bank of America Securities analyst Alec Stranahan has maintained their bearish stance on ALEC stock, giving a Sell rating on December 7.
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Alec Stranahan’s rating is based on several factors that contribute to a cautious outlook for Alector’s stock. The company’s ABC platform, while promising in addressing issues with the blood-brain barrier, still requires human validation to confirm its safety and effectiveness. The preclinical data for their assets, such as AL037 and AL137, show potential, but the transition to human trials will be crucial, particularly in monitoring safety signals and the impact on reticulocytes.
Additionally, the upcoming phase 2 trial for AL101 in Alzheimer’s Disease presents uncertainties. Despite strong enrollment, there are concerns due to the historical failures of similar progranulin-based approaches, which have not shown significant treatment-related effects on key endpoints. Furthermore, financial considerations such as cash burn and the company’s current market valuation also play a role in maintaining a cautious stance, leading to the Sell rating with a price objective of $1.00.
In another report released on December 7, TR | OpenAI – 4o also downgraded the stock to a Sell with a $1.00 price target.