Based on our DCF-derived intrinsic values, our target price is $12. We calculate a DCF-derived intrinsic value by projecting free cash flows to 2032, thereafter applying terminal growth assumptions. Consistent with our sector methodology, we use the CAPM to calculate the cost of equity. We use WACC of 9.5% and assume a 2.5% terminal growth rate.

We rate AMLX High Risk based on the typical volatility of biotech stocks and uncertainty/risk associated with clinical trials and late-stage drug development.

Risks to our Buy rating and target price are data that are not highly supportive of a filing for avexitide in PBH or a PBH market that is not as large as projected. Additional risks include: failure of AMX0035 in Wolfram Syndrome and PSP, in addition to failure of AMX0114 in ALS.