H.C. Wainwright analyst Mitchell Kapoor has reiterated their bullish stance on ALMS stock, giving a Buy rating on March 24.
Mitchell Kapoor has given his Buy rating due to a combination of factors surrounding Alumis Inc.’s strategic developments and financial outlook. The collaboration and licensing agreement with Kaken Pharmaceutical Co. for ESK-001 in Japan significantly enhances Alumis’ financial runway, providing $40 million in upfront and near-term payments and the potential for $140 million in milestone payments. This deal not only strengthens Alumis’ cash position but also extends its cash runway through the first quarter of 2026, allowing the company to focus on clinical and regulatory execution for ESK-001.
Furthermore, Kapoor’s valuation approach, using a discounted cash flow model, estimates a firm value of $1.6 billion and a 12-month price target of $15 per share. The analysis includes a 60% probability of approval for ESK-001 in psoriasis and a 20% probability in systemic lupus erythematosus, reflecting a conservative yet optimistic outlook. Despite potential risks such as regulatory delays and competitive pressures, the strategic partnership and financial projections support the Buy rating, suggesting confidence in Alumis’ future growth and market position.
In another report released on March 24, Leerink Partners also maintained a Buy rating on the stock with a $29.00 price target.