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Mizuho bullish on Alector stock ahead of key Alzheimer's trial data

EditorEmilio Ghigini
Published 08/13/2024, 06:33 AM
ALEC
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On Tuesday, Mizuho Securities sustained its positive outlook on Alector Inc . (NASDAQ:ALEC) stock, maintaining an Outperform rating with a $9.00 price target.

The biopharmaceutical company, which focuses on developing therapies for neurodegenerative diseases, had reported its second-quarter results last week. Mizuho noted that there were no significant new updates regarding Alector's pipeline since the previous quarter.

The firm highlighted the expected release of top-line Phase 2 INVOKE-2 study data for AL002, an anti-TREM2 antibody aimed at treating early Alzheimer's disease, which is anticipated in the fourth quarter of 2024. This upcoming data readout is considered by Mizuho to be the most crucial potential catalyst for Alector's stock within the next year.

The investment firm underscored its enthusiasm for Alector's approach to immuno-neurology and pointed out the company's solid financial position. Alector reportedly has sufficient cash to fund operations through 2026, which spans across their next major data readouts.

Mizuho also remarked on the current risk/reward balance for Alector, noting that the company's stock is trading close to its current cash per share levels. This valuation suggests that the market is assigning little to no value to Alector's innovative pipeline, which Mizuho finds to be a key point in maintaining their Outperform rating.

In other recent news, Alector, Inc. has seen significant developments. The biotechnology firm's shareholders recently elected Louis J. Lavigne, Jr., Richard H. Scheller, Ph.D., and Mark Altmeyer as Class III directors at their 2024 annual meeting.

Ernst & Young LLP was ratified as Alector's independent registered accounting firm for the fiscal year ending December 31, 2024, and the company's executive compensation package was approved.

In addition to these governance decisions, Alector is making strides in its neurodegenerative disease research. The company's PROGRESS-AD trial, which involves a SORT-1 activating antibody for Alzheimer's disease, is ongoing.

Alector's AL101 therapy is also under evaluation for potential benefits in Alzheimer's disease, with the trial design emphasizing biomarkers and employing MRI scans for monitoring.

Meanwhile, H.C. Wainwright has adjusted Alector's share price target from $41.00 to $35.00, while maintaining a Buy rating. This adjustment is due to a reassessment of operating expense assumptions, considering the development of AL101, AL002, and the ABC platform.

Despite the lowered price target, H.C. Wainwright continues to hold a positive outlook for Alector. These are among the recent developments for Alector, Inc.

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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