Amylyx Stock Has A Good Entry Point, Says Bullish Goldman Sachs

Shares of Amylyx Pharmaceuticals Inc AMLX jumped in early trading on Monday, after remaining broadly flat last week.

Investor concerns around the possible failure of the ongoing Phase III PHOENIX study appear to be “overdone,” according to Goldman Sachs.

The Amylyx Pharmaceuticals Analyst: Corinne Jenkins upgraded the rating for Amylyx Pharmaceuticals from Neutral to Buy, while raising the price target from $45 to $49.

The Amylyx Pharmaceuticals Thesis: The company’s shares have significantly underperformed year-to-date, “despite a better-than-expected U.S. commercial launch of Relyvrio in amyotrophic lateral sclerosis (ALS),” Jenkins said in the upgrade note.

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This creates an “attractive entry point” for the stock, she added.

Data from the ongoing Phase III PHOENIX trial is expected in 2024 and a “proprietary statistical analysis” suggested a more than 60% probability of the data demonstrating statistical significance, the analyst stated.

“Further, our model indicates a >70% probability that PHOENIX achieves p<0.1, which we believe is sufficient for the drug to remain on market, with a modest impact on the peak sales opportunity in the U.S.,” she further wrote.

AMLX Price Action: Shares of Amylyx Pharmaceuticals are up 2.08% at $23.02 at the time of publication Monday.

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