Avalo Therapeutics initiated with a Buy at Stifel

Stifel analyst Alex Thompson initiated coverage of Avalo Therapeutics (AVTX) with a Buy rating and $36 price target. The firm believes that hidradenitis suppurativa can become “one of the next large I&I markets where there is significant strategic interest” and that AVTX-009 is highly-derisked following proof-of-concept data from AbbVie’s (ABBV) Lutikizumab, the analyst tells investors. With superior potency and selectivity, there’s “also potential for superior efficacy as a credible upside scenario,” the analyst argues.