Altimmune (ALT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on June 27. Analyst Yasmeen Rahimi from Piper Sandler maintained a Buy rating on the stock and has a $25.00 price target.
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Yasmeen Rahimi has given her Buy rating due to a combination of factors that suggest a promising future for Altimmune’s pemvidutide in the treatment of MASH. Despite the recent setback in the Phase 2b IMPACT trial, where pemvidutide did not achieve statistical significance in improving fibrosis, the drug demonstrated a strong effect on MASH resolution. This outcome, coupled with a notable weight loss benefit and favorable safety profile, indicates potential success in future, larger Phase 3 trials.
Rahimi highlights that similar drugs, such as MDGL’s REZDIFFRA and NVO’s semaglutide, initially missed fibrosis endpoints in earlier trials but later succeeded in Phase 3 due to increased trial sizes. The unexpected high placebo response in the current trial is seen as an anomaly rather than a reflection of the drug’s efficacy. With plans to engage with the FDA and potentially commence Phase 3 trials, Rahimi sees a viable path forward for Altimmune, supported by a risk-adjusted net present value analysis that projects significant sales driven by both US and EU markets for NASH and obesity.
In another report released on June 27, Evercore ISI also maintained a Buy rating on the stock with a $25.00 price target.
ALT’s price has also changed dramatically for the past six months – from $7.670 to $3.500, which is a -54.37% drop .