Market Outperform Rating Reiterated for Allakos Amid Promising AK006 Clinical Developments

Analyst Jonathan Wolleben from JMP Securities reiterated a Buy rating on Allakos (ALLK – Research Report) and keeping the price target at $3.00.

Jonathan Wolleben has given his Buy rating due to a combination of factors related to Allakos’s promising developments and upcoming clinical data. The anticipation of Phase 1 results for AK006 in the second quarter, which are expected to shed light on its safety and efficacy, plays a crucial role. This novel treatment targets Siglec-6, an inhibitory receptor on mast cells, and is positioned to potentially offer a safety advantage in the treatment of chronic spontaneous urticaria (CSU) over existing therapies that present certain safety concerns.

Furthermore, Allakos’s approach of measuring Siglec-6 receptor occupancy and conducting ex vivo mast cell activation assays could provide early indications of biologic efficacy, fostering optimism regarding AK006’s effectiveness as a mast cell inhibitor. The detailed clinical data expected by the end of 2024 is seen as a major catalyst for Allakos’s stock, contributing to the bullish outlook. With these factors in mind, Wolleben reiterates a Market Outperform rating, signaling confidence in the company’s prospects and the potential impact of the upcoming clinical milestones on the stock’s performance.

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.

Allakos (ALLK) Company Description:

Allakos, Inc. engages in the development of therapeutic antibodies. Its primary product is AK002, a monoclonal antibody used for the treatment of various eosinophil and mast cell related diseases such as eosinophilic gastritis, urticaria, severe allergic conjunctivitis, and indolent systemic mastocytosis. The company was founded by Christopher Bebbington, Nenad Tomasevic, Bruce S. Bochner, and Robert Schleimer in 2012 and is headquartered in Redwood, CA.