Alector initiated with bullish view at Deutsche Bank, here’s why

Deutsche Bank initiated coverage of Alector with a Buy rating and $12 price target. Alector is focused on development of novel therapies that target immune targets in the CNS for the treatment of neurodegenerative diseases with lead programs AL001 for frontotemporal dementia patients with granulin mutations and AL002 for Alzheimer’s disease, the analyst noted. At the current price, shares are trading at negative enterprise value as investors see AL001’s Phase 3 study in FTD-GRN as unlikely to succeed, but the firm contends that AL002 “remains highly under-appreciated by the Street.”