TD Cowen has reiterated a Buy recommendation on Avalo Therapeutics Inc. (NASDAQ: AVTX), maintaining a constructive stance toward the biopharmaceutical company as it advances its lead candidate, AVTX-009, into phase II testing.
In reiterating the rating, TD Cowen analyst Stacy Ku wrote that the "Risk/Reward Skewed To Significant Upside For AVTX-009 Phase II In Large HS Oppy." The endorsement accompanies an 83% gain in the stock over the last 12 months; Avalo shares were trading at $15.65 at the time of the report, with a market value of roughly $290 million.
TD Cowen did not adjust its price target when it reiterated the Buy rating. Market watchers continue to display a wide range of valuation expectations for the company, with published analyst targets stretching from $24 on the low end up to $50 on the high end.
Separately, analysis available through InvestingPro indicates that the shares currently appear on a Most Overvalued list when compared to Fair Value calculations provided within that service. That assessment sits alongside the positive analyst momentum around Avalo's lead program.
Several other investment firms have recently taken positions on Avalo and its AVTX-009 candidate, which is being developed as an IL-1β inhibitor for hidradenitis suppurativa (HS). Guggenheim launched coverage with a Buy rating and a $50 price target, calling attention to AVTX-009's profile and suggesting potential advantages in selectivity and dosing frequency versus existing therapies.
Mizuho also initiated coverage, assigning an Outperform rating and a $39 price target while noting the promising outlook for AVTX-009 and expecting a Phase II readout in mid-2026. H.C. Wainwright reiterated a Buy rating with a $25 price target after an investor meeting in which Avalo management discussed the Phase 2 LOTUS trial; the trial data is anticipated in the second quarter of 2026.
Taken together, these broker notes and initiations underscore an active analyst interest in Avalo's therapeutic approach to HS. Multiple firms have expressed confidence in AVTX-009's potential while also setting markedly different valuations for the company, reflecting varied assessments of clinical, commercial, and timing risk.
Contextual note - The TD Cowen rating referenced here specifically relates to the AVTX-009 candidate in phase II development. No change to TD Cowen's price target was reported with the rating reiteration.