Positive Outlook on Aligos Therapeutics’ MASH Treatment Potential and Strategic Valuation

H.C. Wainwright analyst Patrick Trucchio reiterated a Buy rating on Aligos Therapeutics today and set a price target of $50.00.

Patrick Trucchio has given his Buy rating due to a combination of factors that highlight the potential of Aligos Therapeutics’ ALG-055009 in the treatment of Metabolic Dysfunction-Associated Steatohepatitis (MASH). The recent acquisition of Akero Therapeutics by Novo Nordisk underscores the growing interest in innovative MASH treatments, which bodes well for Aligos’ thyroid hormone receptor-beta (THR-β) agonist as a complementary partner in combination therapies. This strategic interest in differentiated MASH treatment mechanisms supports the potential of ALG-055009, which has shown promising results in reducing liver fat and improving lipid profiles without the side effects seen in earlier THR-β agonists.
Additionally, Trucchio’s valuation of Aligos is supported by a risk-adjusted discounted cash flow and sum-of-the-parts methodology, which suggests a firm value of approximately $715 million. This valuation underpins the $50 price target for ALGS, despite acknowledging risks such as clinical development and regulatory challenges, partnership execution, and financing needs. The positive outlook on ALG-055009’s potential to generate significant revenues, coupled with the favorable partnering environment, reinforces the Buy rating on Aligos Therapeutics’ stock.