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, primarily focusing on Alto Neuroscience’s innovative biomarker-driven strategy and promising clinical pipeline. The company’s approach aims to enhance the success rate of clinical trials by utilizing specific biomarkers to identify patient sub-populations that are more likely to respond positively to their treatments. This strategy is particularly significant in the field of neuropsychiatry, where patient heterogeneity often complicates treatment efficacy.
Furthermore, the use of biomarkers could mitigate historically high placebo response rates in depression by ensuring a more targeted patient selection. The integration of cognitive tests and EEG-based biomarkers into existing clinical workflows is seen as feasible, potentially facilitating commercial adoption. Additionally, Alto’s ALTO-300, which is being tested for Major Depressive Disorder, shows promise due to its active compound, agomelatine, which has already been approved in Europe and Australia and is noted for its favorable tolerability profile in treating insomnia-related symptoms.
In another report released on September 15, H.C. Wainwright also maintained a Buy rating on the stock with a $10.00 price target.