Buy Rating Affirmed for Acumen Pharmaceuticals Amid Promising Alzheimer’s Treatment Development and Attractive Valuation

Bank of America Securities analyst Geoff Meacham has reiterated their bullish stance on ABOS stock, giving a Buy rating today.

Geoff Meacham has given his Buy rating due to a combination of factors including Acumen Pharmaceuticals’ solid fourth-quarter earnings and the ongoing development of their Alzheimer’s disease treatment, sabirnetug (ACU193). Despite the lack of major updates, the company’s earnings per share were in line with consensus expectations, and operational expenditures increased as anticipated due to the advancement of the program. Meacham highlights that investor focus should be on the company’s development trajectory, as Acumen plans to initiate key studies for ACU193 in the first half of 2024, which supports the positive outlook.

Meacham also believes that the recent sell-off in Acumen’s stock is overdone and presents an attractive entry point for investors. This view is underpinned by the potential of ACU193 to stand out in the market as a leading monoclonal antibody treatment for Alzheimer’s, targeting specific beta-amyloid oligomers, which could offer advantages over competitors. Despite the general skepticism around the amyloid-beta hypothesis and challenges faced by similar treatments, Meacham notes that ACU193 has shown promising early phase data with rapid impact on key biomarkers and limited safety issues. Moreover, favorable regulatory conditions and advancements in the field could further benefit Acumen, making the stock’s current valuation compelling.

In another report released today, BTIG also maintained a Buy rating on the stock with a $11.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Acumen Pharmaceuticals (ABOS) Company Description:

Acumen Pharmaceuticals Inc is a clinical-stage biopharmaceutical company developing a novel disease-modifying approach to target what we believe to be a key underlying cause of Alzheimer’s disease. The company’s lead drug candidate, ACU193, is a subclass monoclonal antibody which selectively targets amyloid-beta oligomers.