Goldman Sachs Starts Alector Inc. (ALEC) at Sell, 'Significant clinical risk coupled with catalyst vacuum'

Goldman Sachs analyst Corinne Jenkins initiates coverage on Alector Inc. (NASDAQ: ALEC) with a Sell rating and a price target of $4.00.

The analyst comments "We initiate coverage of ALEC with a Sell rating and a 12-month price target of $4 (42% downside). We see significant risk to the company's lead clinical stage programs, latozinemab (Frontotemporal Dementia) and AL002 (Alzheimer's disease). While we acknowledge mechanistic rationale for both agents, there is limited data to support the translation of either mechanism to benefit on clinical measures of disease. Both latozinemab and AL002 enhance the activity of select targets which are known to be diminished in patients with FTD (progranulin) and AD (TREM2), and we have seen data in support of this effect. However, it is not well-established whether up-regulation of either leads directly to clinical benefit, nor if there is a magnitude of increase necessary to see such results. Thus, we see significant clinical risk to both programs and further note that neither data will be reported until 4Q24 (Ph2 study of AL002 in Alzheimer's disease) or 2025 (Ph3 study of latozinemab in FTD), resulting in a significant catalyst vacuum prior to potentially de-risking results."

For an analyst ratings summary and ratings history on Alector Inc. click here. For more ratings news on Alector Inc. click here.

Shares of Alector Inc. closed at $6.88 yesterday.

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