We came across a bullish thesis on Altimmune, Inc. (ALT) on WallStreetBets subreddit page by Old-Pomegranate3634. In this article, we will summarize the bulls’ thesis on ALT. ALT Technologies, Inc. share was trading at $6.10 as of Oct 7th. ALT’s trailing P/E was 1.82 according to Yahoo Finance.
design36/Shutterstock.com
Altimmune (ALT) is developing a promising drug pemvidutide for the growing obesity market. This GLP-1/glucagon dual receptor agonist will address obesity and metabolic dysfunction-associated steatohepatitis (MASH). Currently in the Phase 2b IMPACT trial it has shown promising results like a 15.6% reduction in body weight at its highest dose, along with improvements in triglycerides, cholesterol, and LDL levels. Unlike other existing medicines such as Ozempic and Mounjaro it offers better tolerability and maintains lean muscle mass leading to loss of fat without losing strength.
Obesity treatments are gaining traction, with drugs like Mounjaro boosting pharmaceutical giants like Novo Nordisk and Eli Lilly to new heights. ALT seems significantly undervalued compared to competitors like Viking Therapeutics and Carmot which was acquired by Roche recently for $2.7 billion. ALT appears to give a substantial upside opportunity of about 3x to 8x return on if there is positive news. The company has indicated its intent to secure a partner before entering Phase 3 trials increasing the possibility of a buyout. The company is also expecting a meeting with the FDA by the end of Q3 to finalize the design of the pivotal Phase 3 obesity trials, which could boost investor confidence. Furthermore, the Phase 2b MASH trial data is expected in early 2025 that could drive the stock higher.
Altimmune seems like a good opportunity as the market for obesity treatments is growing quickly because more people worldwide are becoming obese and looking for ways to lose weight. Second, Altimmune has a strong edge with its drug development, which could bring in a lot of money in the future. Lastly, there’s a good chance that bigger pharmaceutical companies might want to buy Altimmune to strengthen their position in the obesity treatment market.
Altimmune, Inc. is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held ALT at the end of the second quarter which was 19 in the previous quarter. While we acknowledge the risk and potential of ALT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ALT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and 10 Best of Breed Stocks to Buy For The Third Quarter of 2024 According to Bank of America.
Disclosure: None. This article was originally published at Insider Monkey.