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Alnylam stock holds Outperform rating as BMO maintains steady target

EditorTanya Mishra
Published 08/13/2024, 10:31 AM
ALNY
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On Tuesday, BMO Capital Markets maintained its Outperform rating and $300.00 price target for Alnylam Pharmaceuticals (NASDAQ: ALNY). The investment firm's confidence in the biopharmaceutical company is bolstered by a recent survey of investors, which showed optimism about the potential of Alnylam's drug, Amvuttra.

The survey, which included 26 buy-side investors, revealed that approximately 70% anticipate the mortality curves for Amvuttra and placebo to diverge at or before the 19-month mark.

The positive sentiment is further evidenced by the fact that around 55% of the investors surveyed expect Alnylam's stock to rise following the presentation of the ESC data, indicating a strong belief in the efficacy of Amvuttra.

Alnylam Pharmaceuticals is in the spotlight as the investment community anticipates the results from the HELIOS-B study, which evaluates the effectiveness of Amvuttra in treating patients. The company's focus on RNA interference (RNAi) therapeutics has positioned it as a pioneer in this innovative area of medicine, with Amvuttra being a key asset in its portfolio.

Alnylam's second-quarter earnings report exceeded expectations in both revenue and profit, largely due to the growth of its TTR franchise and a milestone payment from a licensing agreement with Regeneron (NASDAQ:REGN).

This led to a 16% increase in its TTR franchise compared to consensus estimates. As a result, Alnylam has updated its 2024 revenue guidance, now expecting product revenues to reach between $1.575 billion and $1.65 billion, up from the previous forecast of $1.4 billion to $1.5 billion.

Analysts from Canaccord Genuity and RBC Capital Markets have maintained a positive outlook on Alnylam, raising their price targets following the company's second-quarter earnings report. Notably, Alnylam reported a 34% year-over-year increase in global net product revenues, primarily driven by a 37% increase in the TTR franchise.

Moreover, the company has reported positive top-line results from the HELIOS-B Phase 3 study of vutrisiran in ATTR cardiomyopathy, demonstrating improved cardiovascular outcomes and a mortality benefit compared to placebo.

InvestingPro Insights

Alnylam Pharmaceuticals (NASDAQ:ALNY) has been a subject of investor interest, especially with the upcoming results from the HELIOS-B study. In light of BMO Capital Markets' optimistic outlook, it's worth noting some key financial metrics and expert tips from InvestingPro. The company boasts an impressive gross profit margin of 87.0% over the last twelve months as of Q2 2024, indicating strong profitability on its products. Additionally, Alnylam has demonstrated substantial revenue growth of 89.46% during the same period, showcasing its expanding market presence.

InvestingPro Tips highlight that while analysts are cautious, revising earnings downwards for the upcoming period and not expecting profitability this year, the company operates with a moderate level of debt and its liquid assets exceed short-term obligations. This suggests a solid financial position to weather potential market fluctuations. Furthermore, Alnylam's stock has seen a strong return over the last three months, with a price total return of 80.25%, and is trading near its 52-week high, reflecting a high level of investor confidence.

For those looking for deeper analysis, InvestingPro offers additional insights, including 13 more InvestingPro Tips for Alnylam Pharmaceuticals, which can be found at https://www.investing.com/pro/ALNY. These tips provide a comprehensive view of the company's financial health and market performance, which could be invaluable for investors making informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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