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Avalo Therapeutics, Inc. (AVTX)
NASDAQ:AVTX
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Avalo Therapeutics (AVTX) AI Stock Analysis

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AVTX

Avalo Therapeutics

(NASDAQ:AVTX)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
$19.00
▲(3.04% Upside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by weak financial performance (minimal revenue, large losses, and ongoing cash burn). Technical indicators are moderately supportive (price above key moving averages with neutral momentum), and corporate events are a mild positive due to pipeline updates and strengthened funding—though dilution risk remains. Valuation is also constrained by loss-making status (negative P/E) and no dividend support.
Positive Factors
Clinical progress (abdakibart)
Positive Phase 2 topline and explicit intent to move abdakibart into a registrational Phase 3 materially de-risks the lead program's clinical pathway. Success or clear Phase 3 design reduces regulatory and development uncertainty and anchors the company's strategic focus over the next 2-6 months.
Negative Factors
Minimal and declining revenue
Avalo remains a pre-commercial biotech with revenues that have declined materially; the TTM revenue base is minimal. Lack of recurring product sales means value is fully dependent on clinical success and external financing, constraining reinvestment and making operations sensitive to trial outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Clinical progress (abdakibart)
Positive Phase 2 topline and explicit intent to move abdakibart into a registrational Phase 3 materially de-risks the lead program's clinical pathway. Success or clear Phase 3 design reduces regulatory and development uncertainty and anchors the company's strategic focus over the next 2-6 months.
Read all positive factors

Avalo Therapeutics (AVTX) vs. SPDR S&P 500 ETF (SPY)

Avalo Therapeutics Business Overview & Revenue Model

Company Description
Avalo Therapeutics, Inc. is a precision medicine company in the clinical development phase, dedicated to identifying, advancing, and marketing specialized treatments for patients experiencing critical unmet medical needs across the fields of immun...
How the Company Makes Money
As a clinical-stage biotechnology company, Avalo Therapeutics has historically not relied on recurring product sales as a primary source of income. Its business model is primarily funded through external financing (e.g., issuing equity and/or othe...

Avalo Therapeutics Financial Statement Overview

Summary
Weak operating fundamentals: revenue is minimal and declining, margins are deeply negative, and the company is running large net losses. Cash flow is persistently negative (high burn), partially offset by currently low leverage and an improved equity position versus earlier periods—still implying ongoing funding/dilution risk.
Income Statement
9
Very Negative
Balance Sheet
55
Neutral
Cash Flow
14
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue59.00K59.00K441.00K1.92M18.05M5.40M
Gross Profit-9.95M59.00K807.00K640.00K14.62M3.91M
EBITDA-95.25M-77.75M-34.85M-23.29M-37.29M-80.50M
Net Income-100.33M-78.26M-35.13M-31.54M-41.66M-84.38M
Balance Sheet
Total Assets490.78M116.46M150.73M20.99M33.37M80.21M
Cash, Cash Equivalents and Short-Term Investments400.28M98.34M134.55M7.42M13.17M54.59M
Total Debt0.002.43M568.00K537.00K19.95M33.32M
Total Liabilities42.12M33.41M17.70M13.69M44.28M57.13M
Stockholders Equity448.66M83.05M133.03M7.30M-10.91M23.08M
Cash Flow
Free Cash Flow-68.29M-51.46M-49.06M-30.84M-26.85M-71.00M
Operating Cash Flow-68.29M-51.46M-49.06M-30.68M-26.75M-70.89M
Investing Cash Flow-315.28M-81.72M356.00K-133.00K-95.00K-113.00K
Financing Cash Flow426.66M14.59M175.85M25.04M-14.70M106.76M

Avalo Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.44
Price Trends
50DMA
17.19
Positive
100DMA
16.39
Positive
200DMA
16.61
Positive
Market Momentum
MACD
0.27
Positive
RSI
52.18
Neutral
STOCH
45.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTX, the sentiment is Positive. The current price of 18.44 is below the 20-day moving average (MA) of 18.68, above the 50-day MA of 17.19, and above the 200-day MA of 16.61, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVTX.

Avalo Therapeutics Risk Analysis

Avalo Therapeutics disclosed 80 risk factors in its most recent earnings report. Avalo Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Avalo Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$1.57B-16.72-106.16%63.03%
54
Neutral
$166.19M-1.36-70.89%-37.60%
52
Neutral
$965.48M-3.13-97.55%-86.62%-1121.44%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$108.67M-0.39-4573.89%-100.00%18.45%
47
Neutral
$138.19M-1.63-339.38%17.64%
42
Neutral
$65.71M-1.19-2748.16%43.68%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVTX
Avalo Therapeutics
18.70
10.35
123.95%
CRBP
Corbus Pharmaceuticals
9.74
0.74
8.22%
FBRX
Forte Biosciences
76.83
66.53
645.92%
MIST
Milestone Pharmaceuticals
1.18
-0.33
-21.85%
ELTX
Elicio Therapeutics
3.14
-5.93
-65.38%
GUTS
Fractyl Health, Inc.
0.69
-0.28
-29.18%

Avalo Therapeutics Corporate Events

Business Operations and StrategyExecutive/Board Changes
Avalo Therapeutics Adds Independent Director Ron Philip
Positive
Jun 23, 2026
On June 23, 2026, Avalo Therapeutics appointed industry veteran Ron Philip to its board of directors, where he will serve until the 2027 Annual Meeting and immediately join the Compensation Committee and the Science, Development and Commercial Adv...
Business Operations and StrategyProduct-Related Announcements
Avalo Therapeutics Expands Pipeline With New IL-1β Antibody
Positive
Jun 16, 2026
On June 16, 2026, Avalo Therapeutics announced it is expanding its pipeline with AVTX-010, a long-acting next-generation anti-IL-1β monoclonal antibody intended for hidradenitis suppurativa and other inflammatory disorders. The company has up...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
Avalo Therapeutics Expands Ownership Limits, Updates Executive Contracts
Neutral
Jun 12, 2026
On June 11, 2026, Avalo Therapeutics entered into an exchange agreement with an accredited investor to swap 4,294.675 shares of its Series C non‑voting convertible preferred stock for an equal number of newly created Series C‑1 non&#82...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Avalo Therapeutics Shareholders Back Directors and Governance Changes
Positive
Jun 8, 2026
At its annual meeting held on June 2, 2026, Avalo Therapeutics stockholders elected seven directors to serve until the 2027 annual meeting, with all nominees receiving strong support from the shares present or represented by proxy. Shareholders al...
Business Operations and StrategyPrivate Placements and Financing
Avalo Therapeutics Announces Major Equity and Warrant Offering
Positive
May 7, 2026
On May 5, 2026, Avalo Therapeutics entered into an underwriting agreement to sell 19,730,000 shares of common stock and 1,400,000 pre-funded warrants at roughly $17.75 per unit, with underwriters exercising in full a 3,169,500-share option on May ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026