In a report released today, Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on Alumis Inc. (ALMS – Research Report), with a price target of $14.00.
Mitchell Kapoor’s rating is based on the expectation that the merger between Acelyrin and Alumis will proceed despite opposition from a minority shareholder, Trium Capital. Kapoor believes that Trium’s resistance does not reflect the broader shareholder sentiment and that significant shareholder activism would be required to block the merger, which seems unlikely given the current circumstances.
Additionally, Kapoor’s valuation of Alumis is supported by a discounted cash flow analysis, projecting a firm value of $1.6 billion and a 12-month price target of $14 per share. This valuation considers the potential approval of ESK-001 for psoriasis and systemic lupus erythematosus, while also acknowledging the risks associated with the drug’s development and market competition. Kapoor remains confident in Alumis’s strategic position and the favorable terms of the merger, which are expected to secure the company’s financial runway through 2027.
Kapoor covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Halozyme, and Cartesian Therapeutics. According to TipRanks, Kapoor has an average return of -25.5% and a 25.40% success rate on recommended stocks.