Kambiz Yazdi, an analyst from Jefferies, has initiated a new Buy rating on Avalo Therapeutics (AVTX).
Kambiz Yazdi’s rating is based on Avalo Therapeutics’ promising lead asset, AVTX-009, which is currently in Phase 2 trials for treating moderate to severe hidradenitis suppurativa (HS). The potential of AVTX-009 is supported by previous data from lutikizumab, an antibody targeting IL-1α and IL-1β, which showed efficacy in severe HS patients, suggesting a de-risked path for AVTX-009.
Furthermore, Avalo Therapeutics has a strategic advantage with AVTX-009, as IL-1β is believed to be a more significant driver of HS than IL-1α. This is evidenced by higher IL-1β levels in HS lesions compared to healthy controls. Additionally, AVTX-009 may offer a dosing advantage due to its binding affinity and bioavailability, supporting potential monthly dosing. The company is well-capitalized, with a veteran management team experienced in significant transactions, positioning Avalo favorably in the competitive HS market.
Yazdi covers the Healthcare sector, focusing on stocks such as Avalo Therapeutics, Arcutis Biotherapeutics, and Praxis Precision Medicines. According to TipRanks, Yazdi has an average return of 8.0% and a 52.63% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $36.00 price target.
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