AlloVir's RSV Therapy Is Underappreciated Gem, BofA Comments On Future Potential

B of A Securities analyst Jason Zemansky initiated coverage on AlloVir Inc ALVR with a Buy rating and announced a price target of $17.

AlloVir is a clinical-stage biotech advancing cell therapies for prevention/ treatment of viruses in immunocompromised patients.

Supported by solid phase 2 proof-of-concept data and given high unmet need, the analyst thinks lead asset posoleucel has compelling and underappreciated upside with three ongoing pivotal studies capable of driving a near-term re-rating.

In the analyst's view, pricing remains a key overhang to the story, given the lack of clarity over posoleucel's ultimate indication.

Given clear economic support for posoleucel's use, with increasing openness among payers to reimburse cell-therapies, the analyst sees a compelling business case.

AlloVir sees potential for posoleucel beyond transplant patients, though the analyst thinks few on the Street see much upside here. 

The analyst added that ALVR106, AlloVir's early-stage candidate targeting four respiratory viruses should have broader utility beyond transplant with potential for greater upside.

Overall, the analyst sees a significant upside to the shares at current levels.

Price Action: ALVR shares are trading higher by 13.81% at $2.81 on the last check Friday.

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