Analyst Justin Walsh of JonesTrading reiterated a Buy rating on Alto Neuroscience, Inc. (ANRO – Research Report), retaining the price target of $18.00.
Justin Walsh has given his Buy rating due to a combination of factors surrounding Alto Neuroscience, Inc.’s promising prospects with their ALTO-300 treatment for Major Depressive Disorder. The interim results of the Phase IIb trial have shown a favorable treatment effect, leading to an increase in patient enrollment to enhance the study’s power. The decision to continue with an additional 50 patients who are positive for the EEG-based biomarker indicates strong potential for clinical success.
Moreover, the trial’s design, which now involves 200 patients, ensures a robust statistical power to detect significant treatment effects, even more substantial than the standard of care. The favorable interim findings, combined with the strategic removal of certain patients based on prior learnings, optimize the trial’s outcome prospects. The potential financial impact is significant, with ALTO-300 projected to generate substantial revenue by 2036, reinforcing the Buy rating and the price target of $18.