Promising Preclinical Alzheimer’s Candidate and Diverse Pipeline Bolster Hoth Therapeutics’ Buy Rating

Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Hoth Therapeutics (HOTH – Research Report). The associated price target is $4.00.

Ram Selvaraju’s rating is based on a combination of promising early-stage preclinical data and a diverse pipeline of therapeutic assets under development. Hoth Therapeutics’ HT-ALZ, an Alzheimer’s disease treatment candidate, has shown potential in addressing neuroinflammation and cognitive deficits in preclinical studies. The drug’s targeted approach in modulating the Substance P/Neurokinin 1 receptor pathway has demonstrated a potentially significant impact on Alzheimer’s pathology, including improving memory and cognitive functions in models, which could translate to substantial patient benefits. While the treatment’s impact on amyloid plaque deposition remains to be fully understood, the cognitive improvements observed are encouraging. The Alzheimer’s treatment market is highly lucrative, and although HT-ALZ is not yet factored into Hoth’s valuation due to its early stage, positive clinical developments could greatly enhance the company’s worth.

Further bolstering the Buy rating, Hoth Therapeutics has a robust pipeline with multiple assets across different development phases, including treatments for oncology-related skin toxicity, mast cell-derived cancers, and bacterial skin infections, among others. The most advanced and likely the least risky of these is the BioLexa program for bacterial skin infections in eczema patients, while the company has conservatively assigned value to HT-001, a topical gel in development for oncology applications. Financially, Hoth has strengthened its position with recent warrant exercises, providing an extended operational runway expected to sustain the company into early 2025. This, coupled with better-than-expected financial performance in terms of lower operating expenses, supports the positive outlook on the stock.

In another report released on April 2, EF Hutton also maintained a Buy rating on the stock with a $7.00 price target.

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Hoth Therapeutics (HOTH) Company Description:

Hoth Therapeutics, Inc. is a development stage biopharmaceutical company, which engages in the provision and development of therapeutic platform. The company focuses on the patients suffering from conditions such as atopic dermatitis, also known as eczema. It offers BioLexa Platform, a proprietary, patented, drug compound platform for the treatment of eczema. The company was founded by Robbie Knie, Matthew D. Eitner, and James Ahern in May 2017 and is headquartered in New York, NY.