Aldeyra (ALDX) Stock Could Blast Higher by Another 145%, Says Analyst


It’s a very rewarding trading day for investors in Aldeyra (ALDX) with shares up over 50%, making the stock Wall Street’s bull of the day. Why the excitement? The biotech company announced positive results from its Phase 2b clinical trial of topical ocular reproxalap in patients with dry eye disease. Based on the successful results, Aldeyra plans to initiate a Phase 3 program in dry eye disease in 2019 following discussion with the FDA.

Cantor analyst Elemer Piros believes there’s room for further upside in Aldeyra stock, reiterating an Overweight rating and boosting the price target to $30.00 (from $23.00), which implies an upside of 145% from current levels. (To watch Piros’ track record, click here)

Piros commented, “Given the small size of the study, we believed expectations for the study were set at trends in signs and symptoms of disease. That said, the results demonstrated statistically robust improvements to symptom scores and a sign of disease that were dose dependent. On safety results, the drug was well tolerated and discontinuations were within expectations. Given the additional features of reproxalap: its early potential onset of action (as early as two weeks), tolerability profile, and maintained broad action on a broad range of symptoms and signs, we continue to believe reproxalap has a differentiated to standard of care therapies.”

“With statistically robust vehicle-control data, we believe the results signal the potential for strategic partnership and M&A activity. We anticipate Aldeyra will commercially partner the drug, which would could provide funding for the Phase 3 studies. We have increased our probability of success for dry eye to 60% from 35%, which increases our price target to $30/share from $23/share. We believe the results also cast a favorable light on the on-going Phase 3 allergic conjunctivitis study, which is expected to read out in the 4Q18/1Q19 timeframe,” the analyst continued.

Piros is not the only fan of the drug maker on Wall Street, as TipRanks analytics exhibit ALDX as a Strong Buy. Based on 4 analysts polled by TipRanks in the last 12 months, all 4 are bullish on Aldeyra stock. The 12-month average price target stands at $23.33, marking a 92% upside from where the stock is currently trading. (See ALDX’s price targets and analyst ratings on TipRanks)