Wedbush downgrades Alto Neuroscience to Neutral following ALTO-100 readout

As previously reported, Wedbush analyst Laura Chico downgraded Alto Neuroscience (ANRO) to Neutral from Outperform with a price target of $4, down from $29. With the Phase 2b ALTO-100 readout in major depressive disorder, or MDD, missing its primary endpoint, the firm gives credit to Alto for conducting an ambitious program. Nevertheless, Wedbush is removing ALTO-100 from its estimates. The absence of a positive efficacy signal suggests the biomarker approach may require further investigation before yielding a workable strategy. Following the update, the firm is also increasing its valuation discount rate and removing net cash from its valuation. On the plus side, Alto holds two readouts in the first half of 2025 in MDD. However, these remain upside to Wedbush’s estimates. The firm’s Alto valuation derives solely from ALTO-101 in schizophrenia with data expected in the second half of 2025.