Alto Neuroscience price target lowered to $38 from $41 at Baird

Baird analyst Brian Skorney lowered the firm’s price target on Alto Neuroscience (ANRO) to $38 from $41 and keeps an Outperform rating on the shares. The firm views the Phase 2 proof-of-concept trial failture evaluating ALTO-101 for the treatment of cognitive impairment associated with schizophrenia as a “bit disappointing.” Schizophrenia indications are notoriously challenging so expectations were “relatively muted” into the readout, the analyst tells investors in a research note. Baird continues to see the multiple opportunities for Alto in depression as the more crucial valuation driver. The stock in premarket trading is down 11%, or $2.51, to $20.90.