Roth Capital Partners resumed coverage of Altimmune (NASDSQ:ALT) with a “buy” rating and $13 price target. The stock closed at $1.76 on Feb. 21.
“Altimmune represents a buying opportunity with its dual GLP-1: glucagon agonist, ALT-801, positioned to benefit from validation of weight loss as a NASH mechanism of action but differentiated to push the bar higher on weight loss with potentially less gastrointestinal side effects,” writes analyst Yasmeen Rahimi.
“Already indicated for weight loss in diabetes and obesity, Street expectations are running high for semaglutide, putting pressure on other NASH assets,” she added. “We believe the Phase 2b trial will hit on NASH resolution but will encounter significant gastrointestinal issues, especially at the highest 0.4mg daily dose, as it tries to hit the all-important more than10% weight loss.”
Ms. Rahimi said Altimmune “becomes a buy as it is the only small biotech with a novel dual GLP-1: glucagon agonist (ALT-801) in its pocket. With potential validation of weight loss as a NASH mechanism of action from the Phase 2b semaglutide trial, ALT-801 becomes the only dual GLP-1: glucagon agonist in the hands of a small biotech.”
