Avalo Therapeutics, Inc. (AVTX)
NASDAQ:AVTX
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Avalo Therapeutics
(NASDAQ:AVTX)
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Rating:51Neutral
Price Target:
$17.00
▲(17.81% Upside)
Action:Reiterated
Date:06/24/26
The score is held down primarily by weak financial performance (minimal revenue, sustained losses, and heavy cash burn), partially offset by low leverage (zero debt). Technically, the stock is trending above major moving averages with moderately positive momentum, while valuation is constrained by a negative P/E and no dividend yield. Positive corporate events (Phase 2 results, pipeline expansion, and financing) support the outlook but do not outweigh the current financial risk profile.
Positive Factors
Clinical-stage efficacy (Phase 2 HS)
Robust Phase 2 LOTUS efficacy and favorable safety create a durable foundation for a registrational Phase 3 program. If replicated, the data meaningfully de-risks late-stage development, strengthens regulatory arguments and supports physician adoption and commercial positioning in HS over the next 2-6 months and beyond.
Negative Factors
Sustained cash burn
Persistent negative operating and free cash flow near -$60M TTM signals heavy ongoing funding needs. This constrains the company's ability to self-fund multiple late-stage programs, increases execution risk if costs rise, and makes strategic timing of trials and milestones dependent on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Clinical-stage efficacy (Phase 2 HS)
Robust Phase 2 LOTUS efficacy and favorable safety create a durable foundation for a registrational Phase 3 program. If replicated, the data meaningfully de-risks late-stage development, strengthens regulatory arguments and supports physician adoption and commercial positioning in HS over the next 2-6 months and beyond.
Read all positive factors
Avalo Therapeutics (AVTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$946.18M
Dividend YieldN/A
Average Volume (3M)1.81M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-86.62%
EPS Growth-1121.44%
CountryUS
Employees23
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.83
Shares Outstanding52,565,570
10 Day Avg. Volume1,774,850
30 Day Avg. Volume1,810,006
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)2.93
Price to Sales (P/S)4125.96
P/FCF Ratio-4.73
Enterprise Value/Market Cap0.16
Enterprise Value/Revenue2.56K
Enterprise Value/Gross Profit-14.25
Enterprise Value/Ebitda-1.79
Forecast
1Y Price Target
$45.90Price Target Upside218.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)-3.16
Revenue Forecast (FY)N/A
Avalo Therapeutics Business Overview & Revenue Model
Company Description
Avalo Therapeutics, Inc. is a precision medicine company in the clinical development phase, dedicated to identifying, advancing, and marketing specialized treatments for patients experiencing critical unmet medical needs across the fields of immun...
How the Company Makes Money
As a clinical-stage biotech, Avalo Therapeutics has historically not relied on recurring product sales; detailed, current revenue composition from commercial products is null. In general, companies at this stage fund operations primarily through c...
Avalo Therapeutics Financial Statement Overview
Summary
Income Statement
8
Very Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.00K | 59.00K | 441.00K | 1.92M | 18.05M | 5.40M |
| Gross Profit | -10.62M | 59.00K | 807.00K | 640.00K | 14.62M | 3.91M |
| EBITDA | -84.34M | -77.75M | -34.85M | -23.29M | -37.29M | -80.50M |
| Net Income | -84.74M | -78.26M | -35.13M | -31.54M | -41.66M | -84.38M |
Balance Sheet | ||||||
| Total Assets | 99.89M | 116.46M | 150.73M | 20.99M | 33.37M | 80.21M |
| Cash, Cash Equivalents and Short-Term Investments | 81.99M | 98.34M | 134.55M | 7.42M | 13.17M | 54.59M |
| Total Debt | 2.33M | 2.43M | 568.00K | 537.00K | 19.95M | 33.32M |
| Total Liabilities | 31.57M | 33.41M | 17.70M | 13.69M | 44.28M | 57.13M |
| Stockholders Equity | 68.32M | 83.05M | 133.03M | 7.30M | -10.91M | 23.08M |
Cash Flow | ||||||
| Free Cash Flow | -59.69M | -51.46M | -49.06M | -30.84M | -26.85M | -71.00M |
| Operating Cash Flow | -59.69M | -51.46M | -49.06M | -30.68M | -26.75M | -70.89M |
| Investing Cash Flow | -56.22M | -81.72M | 356.00K | -133.00K | -95.00K | -113.00K |
| Financing Cash Flow | 15.99M | 14.59M | 175.85M | 25.04M | -14.70M | 106.76M |
Avalo Therapeutics Technical Analysis
Positive
14.43
Price Trends
15.76
Positive
15.58
Positive
15.70
Positive
Market Momentum
0.41
Negative
63.60
Neutral
88.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTX, the sentiment is Positive. The current price of 14.43 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 15.76, and below the 200-day MA of 15.70, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVTX.
Avalo Therapeutics Risk Analysis
Avalo Therapeutics disclosed 80 risk factors in its most recent earnings report. Avalo Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avalo Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $152.85M | -1.25 | -70.89% | ― | ― | -37.60% | |
52 Neutral | $126.74M | -0.46 | -4573.89% | ― | -100.00% | 18.45% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $946.18M | -3.09 | -97.55% | ― | -86.62% | -1121.44% | |
48 Neutral | $383.16M | -4.09 | -106.16% | ― | ― | 63.03% | |
47 Neutral | $155.62M | -1.84 | -339.38% | ― | ― | 17.64% | |
44 Neutral | $71.57M | -1.59 | -2748.16% | ― | ― | 43.68% |
* Healthcare Sector Average
AVTX
Avalo Therapeutics
18.00
13.24
278.15%
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Avalo Therapeutics Corporate Events
Business Operations and StrategyExecutive/Board Changes
Avalo Therapeutics Adds Independent Director Ron Philip
Positive
Jun 23, 2026
On June 23, 2026, Avalo Therapeutics appointed industry veteran Ron Philip to its board of directors, where he will serve until the 2027 Annual Meeting and immediately join the Compensation Committee and the Science, Development and Commercial Adv...
Business Operations and StrategyProduct-Related Announcements
Avalo Therapeutics Expands Pipeline With New IL-1β Antibody
Positive
Jun 16, 2026
On June 16, 2026, Avalo Therapeutics announced it is expanding its pipeline with AVTX-010, a long-acting next-generation anti-IL-1β monoclonal antibody intended for hidradenitis suppurativa and other inflammatory disorders. The company has up...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
Avalo Therapeutics Expands Ownership Limits, Updates Executive Contracts
Neutral
Jun 12, 2026
On June 11, 2026, Avalo Therapeutics entered into an exchange agreement with an accredited investor to swap 4,294.675 shares of its Series C non‑voting convertible preferred stock for an equal number of newly created Series C‑1 nonR...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Avalo Therapeutics Shareholders Back Directors and Governance Changes
Positive
Jun 8, 2026
At its annual meeting held on June 2, 2026, Avalo Therapeutics stockholders elected seven directors to serve until the 2027 annual meeting, with all nominees receiving strong support from the shares present or represented by proxy. Shareholders al...
Business Operations and StrategyPrivate Placements and Financing
Avalo Therapeutics Announces Major Equity and Warrant Offering
Positive
May 7, 2026
On May 5, 2026, Avalo Therapeutics entered into an underwriting agreement to sell 19,730,000 shares of common stock and 1,400,000 pre-funded warrants at roughly $17.75 per unit, with underwriters exercising in full a 3,169,500-share option on May ...
Business Operations and StrategyProduct-Related Announcements
Avalo Therapeutics Reports Strong Phase 2 Hidradenitis Data
Positive
May 5, 2026
On May 5, 2026, Avalo Therapeutics reported positive topline Phase 2 results from its LOTUS trial of abdakibart in adults with moderate to severe hidradenitis suppurativa, with both dosing regimens achieving HiSCR75 response rates of about 42% at ...
Business Operations and Strategy
Avalo Therapeutics Restructures AlmataBio Milestone Payment Obligations
Positive
Apr 28, 2026
On April 26, 2026, Avalo Therapeutics entered into a Milestone Buyout Option and Amendment Agreement tied to its March 2024 acquisition of AlmataBio, Inc. The deal restructures a previously agreed $15 million contingent milestone payment that was ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.