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BMO Capital maintains Outperform rating on Alnylam shares with positive outlook

EditorTanya Mishra
Published 27/08/2024, 13:18
ALNY
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BMO Capital has maintained a positive stance on Alnylam Pharmaceuticals (NASDAQ: ALNY), reiterating an Outperform rating alongside a $300.00 price target.

The firm's confidence in the biopharmaceutical company is anchored in the promising top-line data from the HELIOS-B study, which evaluates the efficacy of Alnylam's drug Amvuttra in treating ATTR-CM, a heart condition.

According to BMO Capital, the results from the HELIOS-B study indicate that Amvuttra successfully meets all the necessary criteria, potentially leading to significant market success.

The firm estimates that the drug could reach peak sales of around $8 billion. This optimistic projection is based on the drug's profile, which is expected to independently stand strong, regardless of the forthcoming details from the European Society of Cardiology (ESC).

The firm's analysis suggests that the market is aligned with its positive outlook, with investor expectations also favoring Alnylam's prospects.

BMO Capital anticipates that the data, which is set to be detailed further on September 30, will bolster investor confidence and could drive the stock price up by approximately 20% on August 30.

Alnylam Pharmaceuticals specializes in RNA interference (RNAi) therapies, and Amvuttra (vutrisiran) is one of their leading products designed to treat hereditary transthyretin-mediated amyloidosis (hATTR amyloidosis) with cardiomyopathy (ATTR-CM). ATTR-CM is a progressive, fatal disease caused by the accumulation of transthyretin amyloid fibrils in the heart.

In other recent news, Alnylam Pharmaceuticals has seen a flurry of analyst activity following a series of positive developments. RBC Capital maintained its Outperform rating on Alnylam, citing positive top-line data and an upcoming presentation at the European Society of Cardiology.

Goldman Sachs (NYSE:GS) upgraded Alnylam's stock from Neutral to Buy, anticipating a re-rating driven by the company's key asset, Amvuttra. Similarly, BMO Capital Markets kept its Outperform rating, buoyed by investor optimism regarding Amvuttra. Canaccord Genuity maintained a Buy rating and increased the share target, following Alnylam's second-quarter earnings report that exceeded expectations.

InvestingPro Insights

Alnylam Pharmaceuticals (NASDAQ:ALNY) is drawing attention with its promising drug Amvuttra and its potential market success. InvestingPro data underscores this sentiment with a remarkable gross profit margin of 87% for the last twelve months as of Q2 2024, highlighting the company's efficiency in converting revenues into gross profit. Additionally, the company's revenue growth is impressive, with an 89.46% increase over the last twelve months and an even more striking quarterly growth rate of 107.0% in Q2 2024. Despite not being profitable over the last twelve months, the stock has experienced a significant uptrend, trading near its 52-week high and delivering a strong return of 42.21% over the past year.

InvestingPro Tips for Alnylam Pharmaceuticals include an observation that 10 analysts have revised their earnings upwards for the upcoming period, suggesting a positive sentiment in the financial community regarding the company's future performance. Moreover, the company's liquid assets surpass its short-term obligations, indicating a healthy liquidity position. For investors seeking deeper insights, there are additional tips available on InvestingPro, which provide further analysis on the company's financial health and market potential.

With a market capitalization of $34.55 billion, Alnylam is positioned as a significant player in the biopharmaceutical industry. Although the company operates with a moderate level of debt and analysts do not anticipate profitability this year, its strong return over the last month and three months could be indicative of investor optimism surrounding the stock. For those interested in exploring these dynamics further, more InvestingPro Tips are available, offering a comprehensive understanding of Alnylam's financial and market position.

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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