Goldman Sachs upgraded Altimmune (NASDAQ:ALT) from Sell to Neutral and set a price target of $2.50, with shares rising over 1% in pre-market trading today.
The upgrade followed the company’s recent $225 million financing, which, combined with additional capital raised over the past 18 months, brought its pro forma cash balance to approximately $400 million based on Goldman Sachs estimates.
The analyst noted that the key concern underpinning the prior Sell rating centered on Altimmune’s ability to fund its Phase 3 program evaluating pemvidutide for metabolic dysfunction-associated steatohepatitis (MASH), with estimated costs of around $400 million.
With the financing alleviating near-term capital constraints, the focus was expected to shift toward the probability of clinical success and the drug’s competitive positioning in the MASH market. Goldman Sachs estimated peak sales potential of $1 billion with a probability of success of 75%.
However, the analyst emphasized that this debate would not be resolved in the near term, as trial data is not expected until 2029, supporting a Neutral stance within the firm’s framework.
Since being added to the Sell list in July 2024, Altimmune shares had declined 31%, compared to a 54% gain in the XBI biotech index over the same period.