Alector's Promising Future: Buy Rating Backed by FDA-Endorsed Trials and Amendments

Alector's stock receives a Buy rating from William Blair analyst Myles Minter due to its promising future prospects, including the recent amendment to the INFRONT-3 trial's statistical analysis plan, which includes plasma progranulin as a co-primary endpoint. The ongoing Phase II PROGRESS-AD trial of AL101 in early Alzheimer's disease and the upcoming results from the INFRONT-3 trial are also seen as significant catalysts for the stock. Mizuho Securities has also upgraded the stock to a Buy with a $3.50 price target.

Alector, Inc. (Nasdaq: ALEC) has garnered significant investor attention following a positive rating from William Blair analyst Myles Minter and an upgrade from Mizuho Securities. The analyst ratings come amidst promising developments in the company’s clinical trials and financial outlook.

Myles Minter of William Blair has given Alector a Buy rating, citing the recent amendment to the INFRONT-3 trial’s statistical analysis plan as a key catalyst. The amendment includes plasma progranulin as a co-primary endpoint, which is seen as a significant advancement in the treatment of frontotemporal dementia (FTD) due to a GRN gene mutation (FTD-GRN). The INFRONT-3 trial is a pivotal, 96-week, randomized, double-blind, placebo-controlled Phase 3 study evaluating latozinemab, an investigational therapy for FTD-GRN. Pending the trial’s outcome, Alector and its partner, GSK, are preparing for potential Biologics License Application (BLA) and Marketing Authorization Application (MAA) submissions in 2026 [1].

Additionally, the ongoing Phase 2 PROGRESS-AD trial of AL101 in early Alzheimer’s disease is expected to complete in 2026. AL101 is an investigational human monoclonal antibody designed to block and internalize the sortilin receptor to elevate progranulin levels in the brain. The trial, which enrolled participants in April 2025, is seen as a critical milestone for Alector’s pipeline in the treatment of Alzheimer’s disease [1].

Mizuho Securities has also upgraded Alector’s stock to a Buy rating with a $3.50 price target, underscoring the potential for the company’s clinical programs to drive value. The upgrade reflects the market’s optimism regarding Alector’s progress in developing first- and best-in-class therapies for patients with serious neurodegenerative diseases [2].

Alector’s financial results for the second quarter of 2025 highlight the company’s robust cash position. As of June 30, 2025, Alector’s cash, cash equivalents, and investments totaled $307.3 million, providing a runway into the second half of 2027. The company reported a net loss of $30.5 million for the quarter, a decrease from the $38.7 million loss in the same period in 2024 [1].

Alector’s management is updating its guidance for the year ending 2025, anticipating collaboration revenue to be between $13 million and $18 million, total research and development expenses to be between $130 million and $140 million, and total general and administrative expenses to be between $55 million and $65 million [1].

In conclusion, Alector’s recent developments in clinical trials and financial outlook have garnered positive attention from analysts, positioning the stock as a promising investment in the biotechnology sector. Investors should closely monitor the upcoming results from the INFRONT-3 trial and the PROGRESS-AD trial for further insights into Alector’s potential.

References:
[1] https://www.globenewswire.com/news-release/2025/08/07/3129662/0/en/Alector-Reports-Second-Quarter-2025-Financial-Results-and-Provides-Business-Update.html
[2] https://www.mizuhosecurities.com/ (Note: The URL for Mizuho Securities is not provided in the source materials; the information is based on the article's content.)