Stifel analysts reaffirm Altimmune stock rating with $18 price target

Stifel analysts reiterated a Buy rating on Altimmune (ALT) with an $18 price target, citing optimism for pemvidutide's Phase 2b MASH readout in June, while Piper Sandler reiterated its Overweight rating and $25 price target. The company's Q1 2025 EPS beat estimates at -$0.26, and analysts are increasingly positive, revising earnings estimates upward; pemvidutide is also being evaluated for Alcohol Use Disorder. Positive trial outcomes could attract strategic partnerships, as the drug's profile shows potential for significant liver fat reduction, cardiovascular risk improvement, and weight loss.

Analysis

Stifel analysts have reiterated a Buy rating for Altimmune (NASDAQ: ALT) with an $18.00 price target, a significant premium to its current $5.43 trading price, ahead of the pivotal Phase 2b IMPACT readout for its MASH drug candidate, pemvidutide, anticipated in June. This positive outlook is echoed by Piper Sandler, which maintained an Overweight rating and a $25.00 price target. Reinforcing this optimism, five analysts have recently revised their earnings estimates upward for Altimmune, with price targets for the stock ranging between $6 and $28. Altimmune reported narrower-than-expected losses for its first-quarter 2025, with an EPS of -$0.26 against an expected -$0.38, and revenues of $5 million. The company's financial position appears robust, characterized by more cash than debt and a strong current ratio of 15.85, supporting its clinical development programs. Pemvidutide is highlighted for its potential to deliver rapid reductions in liver fat, improvements in cardiovascular risk, and weight loss, positioning it favorably in a MASH market showing increased activity, evidenced by the recent success of Madrigal Pharmaceuticals' Rezdiffra. Analysts suggest a high probability of success for pemvidutide in achieving MASH resolution and fibrosis improvement, which could attract strategic partnerships, although Altimmune is also prepared to advance the drug independently for MASH, Alcohol Use Disorder (AUD), and Alcoholic Liver Disease (ALD).

Key Decisions for Investors

• Investors should closely monitor the upcoming Phase 2b IMPACT MASH data readout for pemvidutide in June, as this is a primary catalyst for Altimmune's stock.
• Consider the substantial upside implied by analyst price targets (Stifel $18, Piper Sandler $25) relative to the current stock price, while acknowledging the speculative nature of clinical-stage biotechnology investments dependent on trial outcomes.
• Factor in Altimmune's solid financial health, including a favorable cash-to-debt ratio and better-than-expected Q1 2025 earnings, which may mitigate near-term funding risks as it advances its pipeline.
• Evaluate the potential for strategic interest or partnership for pemvidutide following positive trial results, which could serve as a significant value inflection point, especially given the growing MASH market.
• Note the expansion of pemvidutide's potential applications into Alcohol Use Disorder (AUD) with an ongoing Phase 2 trial, which could offer further diversification and market opportunity beyond MASH.