Avalo Therapeutics initiated with an Outperform at Wedbush

Wedbush analyst Robert Driscoll last night initiated coverage of Avalo Therapeutics (AVTX) with an Outperform rating and $18 price target Avalo is a clinical stage company focused on developing lead asset AVTX-009, a selective, high-affinity anti-IL-1beta targeted monoclonal antibody in the inflammatory skin disease hidradenitis suppurativa, the analyst tells investors in a research note. The firm sees the potential for a “best-in-class agent with a de-risked approach” to treat hidradenitis suppurativa, which it says has a large, and expanding commercial opportunity. Avalo is also exploring additional potential indications for AVTX-009 for which significant scientific or clinical rationale exists, including arthritis, that could drive significant additional upside, contends Wedbush.