Amylyx Soars 6.77% on Analyst Upgrades, Institutional Buys Despite Earnings Miss

Amylyx Pharmaceuticals (NASDAQ: AMLX) surged 6.77% on Wednesday, extending its three-day winning streak with a cumulative gain of 9.61%. The stock hit an intraday high of $11.98, marking its highest level since September 2025, and closed the session near the upper end of its 52-week range. Analyst optimism and institutional buying have been pivotal in driving the recent momentum, despite a recent quarterly earnings shortfall.

Recent analyst activity has significantly boosted investor confidence. Goldman Sachs raised its price target to $20.00, implying a 66.9% potential upside, while Bank of America set a $14.00 target with a "Buy" rating. Citigroup and TD Cowen also issued bullish assessments, contributing to a broad consensus favoring the stock. These upgrades follow a June "Hold" rating from UBS, highlighting mixed but increasingly positive sentiment among key firms.

Institutional investors have deepened their positions in AMLX, reflecting long-term confidence. China Universal Asset Management increased holdings by 18.3%, while BNP Paribas nearly quintupled its stake. The California State Teachers Retirement System also entered the market in Q2. With 95.84% of shares held by institutions, large-scale investor activity remains a critical driver for the stock’s trajectory.

Despite analyst optimism, earnings challenges persist. The company reported a quarterly loss of $0.46 per share, slightly missing estimates, and continues to navigate financial pressures typical of small-cap biotechs. Its negative P/E ratio (-4.78) and beta of -0.45 underscore inherent volatility, though a strong focus on neurodegenerative disease treatments—particularly ALS—positions Amylyx in a high-growth sector. Recent clinical or regulatory updates were not disclosed in the materials provided.

The stock’s 12-month range of $2.60 to $12.25 and a 50-day moving average of $8.74 suggest a volatile but upward bias. Institutional ownership and analyst upgrades appear to outweigh near-term earnings risks, creating a favorable backdrop for investors with a high-risk tolerance. Upcoming reports and continued institutional activity will likely shape further movements in the near term.