Avalo Therapeutics (AVTX) AI Stock Analysis

• Market Cap: $69.51M
• Dividend Yield: N/A
• Average Volume (3M): 113.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -69.59%
• EPS Growth: N/A
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -1.25
• Shares Outstanding: 10,827,620
• 10 Day Avg. Volume: 152,897
• 30 Day Avg. Volume: 113,966
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.99
• Enterprise Value/Market Cap: -1.05
• Enterprise Value/Revenue: -29.12
• Enterprise Value/Gross Profit: -100.79
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: $27.50
• Price Target Upside: 328.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $6.50 ▲(1.25%Upside)

The most significant factor affecting Avalo Therapeutics' stock score is its financial performance, characterized by declining revenues and persistent losses. While technical indicators show bullish momentum, the overbought condition and negative valuation metrics pose risks. Positive corporate events offer some potential upside, but the company's financial instability remains a primary concern.

Positive Factors

Financial Position

Avalo Therapeutics ended the fiscal year with $134.5 million in cash and equivalents, which is expected to be sufficient to fund operations into 2027, indicating strong financial stability.

Market Opportunity

The HS market is rapidly expanding, with biologics projected to garner over $4 billion by 2035, which broadens the market opportunity for Avalo.

Product Development

Avalo Therapeutics is developing a novel IL-1β-targeted strategy, which is considered a superior approach for treating hidradenitis suppurativa.

Negative Factors

Financial Performance

The company reported a net loss of $35.3M as it reported a loss of $26.5M in change in fair value of warrant liability.

Stock Rating

Analyst maintains a Neutral rating on the stock and anticipates reevaluating the view closer to the Phase 2 data in HS or at the time of a data release.

Avalo Therapeutics Business Overview & Revenue Model

Company Description

Avalo Therapeutics (AVTX) is a biopharmaceutical company focused on developing and commercializing targeted therapeutics for patients with significant unmet medical needs. Operating in the biotechnology sector, Avalo aims to address diseases in immunology, oncology, and rare genetic disorders. Their core products include a pipeline of novel drug candidates designed to modulate immune system pathways and treat various serious health conditions.

How the Company Makes Money

Avalo Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model includes partnerships and collaborations with larger pharmaceutical firms, which may involve upfront and milestone payments, as well as royalties from product sales. Licensing agreements also play a crucial role, allowing Avalo to monetize its research and development efforts. Additionally, the company may receive funding from grants and government research programs to support its drug development initiatives. Significant factors contributing to its earnings include the successful progression of its drug candidates through clinical trials and eventual regulatory approvals that enable market entry and product sales.

Avalo Therapeutics Financial Statement Overview

Summary

Avalo Therapeutics is facing severe financial difficulties, marked by declining revenues, persistent losses, and negative cash flow. Despite improved equity from debt elimination, the lack of revenue growth and profitability indicates substantial financial instability.

Income Statement

Avalo Therapeutics has experienced a significant decline in revenue over the years, with the most recent annual revenue dropping to $441,000 from $1,924,000 the previous year. The company also shows negative gross profit and net income over multiple years, indicating ongoing operational challenges. Additionally, the net profit margin is consistently negative, reflecting broader profitability issues.

Balance Sheet

The company's balance sheet shows a high equity ratio, primarily due to the elimination of total debt in the most recent year. However, the return on equity remains negative due to ongoing net losses. The stockholders' equity has improved significantly from negative to positive over the past year, which is a positive sign, but the lack of revenue growth remains concerning.

Cash Flow

Avalo Therapeutics demonstrates negative free cash flow consistently, indicating cash flow challenges. The operating cash flow to net income ratio is also negative, highlighting inefficiencies in translating operational activities into cash flow. Although financing activities have supported operations in previous years, the sustainability of this approach is uncertain given ongoing losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.00K	1.92M	18.05M	5.40M	6.70M
Gross Profit	807.00K	640.00K	14.62M	3.91M	6.40M
EBITDA	-68.34M	-23.29M	-37.29M	-80.50M	-45.45M
Net Income	-35.13M	-31.54M	-41.66M	-84.35M	-64.38M
Balance Sheet
Total Assets	150.73M	20.99M	33.37M	80.21M	43.76M
Cash, Cash Equivalents and Short-Term Investments	134.55M	7.42M	13.17M	54.59M	18.92M
Total Debt	568.00K	537.00K	19.42M	32.83M	426.35K
Total Liabilities	17.70M	13.69M	44.28M	57.13M	19.19M
Stockholders Equity	133.03M	7.30M	-10.91M	23.08M	24.56M
Cash Flow
Free Cash Flow	-49.06M	-30.84M	-26.85M	-71.00M	-40.60M
Operating Cash Flow	-49.06M	-30.68M	-26.75M	-70.89M	-40.54M
Investing Cash Flow	356.00K	-133.00K	-95.00K	-113.00K	11.13M
Financing Cash Flow	175.85M	25.04M	-14.70M	106.76M	44.78M

Avalo Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6.42 is above the 20-day moving average (MA) of 5.14, above the 50-day MA of 4.58, and below the 200-day MA of 7.49, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 80.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVTX.

Avalo Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVTX	54 Neutral	$69.51M	―	678.24%	―	-69.59%	―
Sector *	52 Neutral	$7.46B	-0.04	-63.82%	2.49%	16.43%	<0.01%
PYXS	47 Neutral	$70.00M	―	-66.30%	―	―	30.51%
ANRO	42 Neutral	$75.80M	―	-38.04%	―	―	―

Avalo Therapeutics Corporate Events

Avalo Therapeutics Highlights Potential of AVTX-009 in HS

On June 20, 2025, Avalo Therapeutics released an updated investor presentation highlighting the potential of its lead compound, AVTX-009, which shows promise in treating hidradenitis suppurativa (HS) with a higher affinity and longer half-life compared to existing treatments. The Phase 2 LOTUS trial for AVTX-009 is currently enrolling, with topline data expected by mid-2026, and the HS market is projected to grow significantly, offering substantial opportunities for Avalo and its stakeholders.

The most recent analyst rating on (AVTX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.

Avalo Therapeutics Appoints Dr. Rita Jain to Board

On June 17, 2025, Avalo Therapeutics appointed Dr. Rita Jain to its Board of Directors, bringing her extensive experience in biopharmaceutical development and regulatory affairs. This strategic addition aims to bolster Avalo’s efforts in advancing its lead asset, AVTX-009, currently in a Phase 2 trial for hidradenitis suppurativa, and aligns with the company’s broader development strategy. The Board also approved a revised compensation plan for non-employee directors to attract and retain qualified members, effective the same day.

The most recent analyst rating on (AVTX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.

Avalo Therapeutics Holds 2025 Annual Meeting

Avalo Therapeutics held its 2025 Annual Meeting on June 17, 2025, where stockholders voted on several key proposals. The meeting saw a high participation rate with approximately 90% of shares present or represented by proxy. During the meeting, eight nominees were elected to the Board, a ‘Say-on-Pay’ resolution was approved, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (AVTX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.

Avalo Therapeutics Signs New Sales Agreement

On June 5, 2025, Avalo Therapeutics entered into a new Sales Agreement with TD Securities to offer and sell up to $75 million in common stock shares. This agreement follows the termination of a previous agreement with Oppenheimer & Co., which was concluded on June 4, 2025, allowing Avalo to explore new market opportunities without incurring termination penalties.

The most recent analyst rating on (AVTX) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.

Avalo Therapeutics Highlights AVTX-009 Potential in HS Market

On June 4, 2025, Avalo Therapeutics released an updated investor presentation highlighting the potential of their lead compound, AVTX-009, in treating hidradenitis suppurativa (HS). The presentation emphasized AVTX-009’s superior affinity and longer half-life compared to existing treatments, suggesting it could offer more effective and convenient dosing. The HS market is projected to grow significantly, and Avalo’s ongoing Phase 2 LOTUS trial aims to capture a share of this expanding market. The company’s management team brings over 200 years of experience in biotech and pharma, supporting Avalo’s strategic positioning in the industry.

The most recent analyst rating on (AVTX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.

Avalo Therapeutics Updates on AVTX-009 and LOTUS Trial

On May 8, 2025, Avalo Therapeutics, Inc. updated its investor presentation, highlighting the potential of its lead compound, AVTX-009, in treating hidradenitis suppurativa (HS). The company emphasized AVTX-009’s higher affinity and longer half-life compared to existing treatments, suggesting it could offer more effective and convenient dosing. The announcement also noted the initiation of the Phase 2 LOTUS trial for AVTX-009, with topline data expected in 2026, and projected a significant market growth for HS treatments, potentially exceeding $10 billion by 2035.