Analyst Andrew Fein of H.C. Wainwright maintained a Buy rating on Alector (ALEC – Research Report), with a price target of $7.00.
Andrew Fein’s rating is based on promising clinical data and scientific rationale supporting Alector’s therapeutic approach. The INFRONT-2 study results indicate that Alector’s drug, latozinemab (AL001), shows potential in slowing the progression of frontotemporal dementia (FTD) by restoring progranulin (PGRN) levels and reducing neuroinflammation markers. This suggests robust target engagement and potential disease modification, as evidenced by the significant decrease in clinical progression rates compared to control groups.
Furthermore, Alector’s AL101 is positioned for larger trials in Alzheimer’s disease (AD) due to its unique pharmacokinetic and pharmacodynamic properties. The scientific foundation for this approach is supported by genetic studies linking GRN risk alleles to AD and animal model studies showing progranulin’s role in alleviating AD symptoms. The trial design, incorporating key endpoints and relevant biomarkers, enhances the potential for successful outcomes, making Alector’s stock a compelling buy.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALEC in relation to earlier this year.