Key insights
- Goldman Sachs upgraded Altimmune (ALT) to Neutral due to improved capital position following a $225M financing. This alleviates near-term solvency concerns related to funding a Phase 3 trial for pemvidutide in MASH. The focus shifts to the drug's probability of success, with Goldman Sachs estimating $1B peak sales and a 75% probability. While positive for ALT, the broader market impact is limited.
Investing.com - Goldman Sachs upgraded Altimmune (NASDAQ:ALT) to Neutral from Sell on Thursday and set a price target of $2.50.
The upgrade follows a $225 million financing announced by the company this week. Combined with other financing activity over the past 18 months, the transaction brings pro forma cash on hand to approximately $400 million, according to Goldman Sachs estimates. The company now holds more cash than debt on its balance sheet, according to InvestingPro data, with a current ratio of 18.55 reflecting strong near-term liquidity.
Goldman Sachs analyst Corinne Johnson said the financing "meaningfully if not fully resolves the company’s near-term capital constraints." The firm had previously rated the stock Sell due to concerns about Altimmune’s ability to execute a Phase 3 program evaluating pemvidutide in metabolic dysfunction associated steatohepatitis given its balance sheet and the estimated $400 million cost of the study.
Goldman Sachs expects the key debate for the stock will now shift to the probability the Phase 3 study proves pemvidutide to be competitive in the MASH space. The firm estimates peak sales of $1 billion with a 75% probability of success.
The firm does not expect data from the study until 2029. Since being added to Goldman Sachs’ Sell list on July 10, 2024, Altimmune shares fell 31% compared with a 54% gain for the XBI over that period. The stock is currently trading at $2.89, near its 52-week low of $2.80. For deeper analysis of Altimmune’s financial health and growth prospects, investors can access a comprehensive Pro Research Report on InvestingPro.
In other recent news, Altimmune Inc. announced the pricing of a $225 million public offering, setting the price at $3 per share for common stock and accompanying warrants. The offering includes pre-funded warrants with an exercise price of $0.001, allowing for the purchase of up to 10.75 million shares. Altimmune also launched this underwritten public offering of common stock and warrants, with some investors receiving pre-funded warrants instead of common stock. In addition, Altimmune’s shareholders approved an amendment to double the authorized shares of common stock from 200 million to 400 million, following a majority vote at the 2026 Annual Meeting of Stockholders. Analyst firm Jefferies reiterated a Buy rating for Altimmune, maintaining a price target of $28, highlighting the company’s transition into a Phase 3-ready stage with reduced financing concerns. Truist Securities initiated coverage with a Buy rating and a $12 price target, citing the potential of Altimmune’s lead asset, pemvidutide, in treating MASH and liver-related diseases. These developments reflect Altimmune’s strategic moves to strengthen its financial position and advance its clinical pipeline.
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