Alector downgraded to Underperform at BofA after Alzheimer’s trial miss
by 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.