Alector downgraded to Underperform at BofA after Alzheimer’s trial miss
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Contributor since / Followers
Contributor since / Followers
2 months ago
- As previously reported, BofA downgraded Alector (NASDAQ:ALEC) to Underperform from Neutral with a price target of $1, down from $9, after ALOO2 missed the mark in its Phase 2 Alzheimer’s trial. Shares trade 10% lower.
- The firm sees this as likely the end for the AL002 program, does not expect the $250M opt-in milestone from AbbVie (ABBV) to be realized, and removed AL002 from its model, the analyst tells investors.
- The firm also decreased its estimate of the value of AL001 and sees “significant investment” needed to spur the next leg of pipeline growth.
- Looking at Seeking Alpha’s Quant rating, ALEC has a score of just 1.27 out of 5 and sees the stock as a “Strong Sell”. The company received D- in the prospect of profitability and momentum, while it got a B- in valuation and C in growth factors.
- Turning to the Wall Street community, just 6 analysts gave ALEC a Strong Buy while just 2 stood with Buy whereas, 1 of them gave the stock a Hold recommendation, and 2 were on the short side.
- Seeking Alpha analysts see the stock as a Sell, with a rating of 2.00.