ALVO Stock Jumps On Double Upgrade — Why Barclays Sees A 59% Upside

• Santangelo now sees a favorable risk-reward into a cluster of U.S.Food and Drug Administration (FDA) decisions due by December 4 or sooner.
• He states the stock, after a steep two-year slide from its 2024 peak near $18, offers around two times as much upside as downside on those rulings.
• Alvotech is awaiting approval for its biosimilars to Johnson & Johnson’s Simponi and Simponi Aria, Regeneron’s Eylea, and Amgen’s Prolia and Xgeva.

Shares of Alvotech (ALVO) jumped about 8% intraday in U.S. trading on Wednesday after Barclays flipped its rating on the Icelandic biosimilar maker and doubled its price target, while voicing optimism about the U.S. Food and Drug Administration (FDA) approving three of its biosimilar programs.

Barclays analyst Glen Santangelo raised the stock to Overweight from Underweight and lifted his target to $8 from $4. The move is a reversal from March, when the same desk cut its target to $4 from $5 and said the shares will “remain in a holding pattern” ahead of the approvals.

Barclays’ new price target implies a potential upside of 59% from the stock’s closing price on Tuesday.

Why The Rating Flipped

Santangelo now sees a favorable risk-reward into a cluster of FDA decisions due by December 4 or sooner. He states the stock, after a steep two-year slide from its 2024 peak near $18, offers around two times as much upside as downside on those rulings.

The firm pointed to work Alvotech completed after receiving letters from the FDA rejecting the applications last year. Those CRLs, tied to a 2025 pre-license inspection of the company’s Reykjavik plant, delayed proposed copies of Johnson & Johnson’s Simponi and Simponi Aria, Regeneron’s Eylea, and Amgen’s Prolia and Xgeva. Alvotech resubmitted the applications in June.

Plant Inspection Closed

Barclays’ confidence rests on a later, routine FDA surveillance inspection of the same Iceland facility. The agency finished that May audit and formally closed it in July with a Voluntary Action Indicated classification, a designation that typically means observations were noted but no enforcement action is planned. Alvotech has said the outcome supports its push to get the resubmitted filings approved this year.

What Is At Stake

Alvotech develops and manufactures biosimilars and relies on partners to sell them. Teva handles U.S. marketing for the Simponi and Eylea candidates; Dr. Reddy’s is the U.S. applicant for the denosumab copies.

The company already sells U.S. biosimilars to AbbVie’s Humira and Johnson’s Stelara through Teva. Approvals on the pending files would widen that U.S. slate after a year defined by plant-related delays, leverage concerns, and a share-price low near $3 in June.

How Did ALVO Retail Traders React?

On Stocktwits, retail sentiment around ALVO stock jumped from ‘bearish’ to ‘bullish’ over the past 24 hours, while message volume increased from ‘low’ to ‘normal’ levels.

A Stocktwits user said they are buying the stock, adding the stock has cleanly punched through a price ceiling that had been holding it back.

Another user saw the stock hitting as high as $8 in 2027.

ALVO stock has gained 6% year-to-date. 

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