H.C. Wainwright analyst Andrew Fein has increased the target price for Alector (ALEC, Financial) from $7 to $10, maintaining a Buy rating on the stock. According to Fein, the pivotal factor for Alector this year is the topline data from the INFRONT 3 study. The firm highlights the unique pharmacokinetics and pharmacodynamics of AL101, which make it particularly suitable for treating widespread conditions such as Alzheimer’s disease.
Furthermore, results from the 12-month INFRONT-2 study involving patients with symptomatic GRN-related frontotemporal lobar degeneration, who received treatment every four weeks, suggest that AL001 might be effective in normalizing progranulin levels. This potential therapeutic benefit supports the positive outlook shared by H.C. Wainwright.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Alector Inc (ALEC, Financial) is $4.58 with a high estimate of $9.00 and a low estimate of $1.00. The average target implies an upside of 340.71% from the current price of $1.04. More detailed estimate data can be found on the Alector Inc (ALEC) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Alector Inc's (ALEC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alector Inc (ALEC, Financial) in one year is $3.82, suggesting a upside of 267.31% from the current price of $1.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alector Inc (ALEC) Summary page.
ALEC Key Business Developments
Release Date: February 26, 2025
- Cash Equivalents and Short-term Investments: $413.4 million as of December 31, 2024.
- Collaboration Revenue (Q4 2024): $54.2 million, up from $15.2 million in Q4 2023.
- Collaboration Revenue (Full Year 2024): $100.6 million, compared to $97.1 million in 2023.
- Research and Development Expenses (Q4 2024): $46.5 million, compared to $47.7 million in Q4 2023.
- Research and Development Expenses (Full Year 2024): $185.9 million, compared to $192.1 million in 2023.
- General and Administrative Expenses (Q4 2024): $15 million, compared to $14.9 million in Q4 2023.
- General and Administrative Expenses (Full Year 2024): $59.6 million, compared to $56.7 million in 2023.
- Estimated Collaboration Revenue (2025): Between $5-15 million.
- Estimated Research and Development Expenses (2025): Between $175-185 million.
- Estimated General and Administrative Expenses (2025): Between $55-65 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alector Inc (ALEC, Financial) is advancing two first-in-class late-stage clinical programs in collaboration with GSK, targeting neurodegenerative disorders with high unmet medical needs.
- The company has a strong cash position with $413.4 million in cash equivalents and short-term investments as of December 31, 2024, supporting its strategic objectives.
- Alector Inc (ALEC) has received breakthrough therapy designation from the FDA for latozinumab, based on promising Phase 2 clinical trial data for FTD granulin.
- The company is leveraging its proprietary ABC platform to enhance the delivery of therapeutics to the brain, potentially improving efficacy and safety.
- Alector Inc (ALEC) is making progress in its preclinical pipeline, with plans to advance candidates targeting amyloid beta and tau pathology towards IND-enabling studies this year.
Negative Points
- There are no approved treatment options currently available for patients with frontotemporal dementia (FTD), highlighting the high-risk nature of Alector Inc (ALEC)'s clinical programs.
- The company's research and development expenses remain high, totaling $185.9 million for the year 2024, which could impact profitability.
- Alector Inc (ALEC) faces competition in the neurodegenerative disease space, with several other programs in clinical development for FTD.
- The company's anticipated collaboration revenue for 2025 is estimated to be between $5-15 million, which may not significantly offset its high R&D expenses.
- The success of Alector Inc (ALEC)'s clinical trials is uncertain, with the potential for variability in disease progression among trial participants affecting outcomes.
