Barclays Sees 59% Upside in ALVO Stock as FDA Decisions Loom
Alvotech's (ALVO) stock price surged about 8% intraday on Wednesday after Barclays flipped its rating to Overweight from Underweight and doubled its price target. The analyst, Glen Santangelo, sees a favorable risk-reward into a cluster of FDA decisions due by December 4 or sooner.
The biosimilar maker's stock has been in a two-year decline from its peak near $18 in 2024, but Santangelo believes it now offers around twice as much upside as downside on the upcoming rulings. This optimism is driven by Alvotech's completion of work after receiving letters from the FDA rejecting its applications last year.
The company resubmitted its biosimilar programs for Johnson & Johnson's Simponi and Simponi Aria, Regeneron's Eylea, and Amgen's Prolia and Xgeva in June. The key factor is a routine FDA surveillance inspection of the Reykjavik plant, which was formally closed in July with a Voluntary Action Indicated classification.
The Barclays' price target implies a potential upside of 59% from ALVO's closing price on Tuesday, set at $5.