Alto Neuroscience (ANRO) was initiated with bullish ratings at Jefferies (Buy), TD Cowen (Outperform), Baird (Outperform), and Stifel (Buy) in research notes Tuesday.
Jefferies analysts, who assigned the stock a $33 price target, said they like the risk/reward into four Phase II depression/schizophrenia readouts in H2:24/2025. Analysts added that just one study needs to succeed for significant value creation.
TD Cowen stated the company is "redefining psychiatry with precision." They stated: "ANRO is developing precision neuropsychiatry therapies for MDD, PTSD, and schizophrenia. We think the most current investment value resides in the lead Ph2b asset."
Baird, which has a $32 price target on the stock, argues that Alto is taking a forward-thinking approach to the MDD space and other neuropsych indications.
"We think the key Phase 2b readouts from ALTO-100 and ALTO-300 in their respective MDD subpopulations in 2H24 and 1H25, respectively, carry substantial upside potential for shares," analysts wrote.
Stifel, which also assigned ANRO with a $32 price target, explained that ANRO is "leveraging a 'precision psychiatry' approach in the development of various early-to-mid-stage CNS drug candidates."
"In theory, the idea of precision psychiatry makes a ton of sense," analysts wrote. "It's well accepted that conditions like depression, bipolar and anxiety are highly heterogeneous, and KOLs are very receptive to the idea of leveraging biomarkers."
"In our view, each asset offers a credible shot-on-goal on the back of promising initial data--with a highly upside biased stock risk/reward into 2H24/1H25 readouts," analysts wrote.