BofA Securities initiated coverage of Alvotech S.A. with a Buy rating and a $7 price target, citing the company’s positioning in the upcoming biosimilar launch cycle and the recent resolution of a regulatory overhang.
The U.S. Food and Drug Administration’s closure of its inspection of Alvotech’s manufacturing facility in Reykjavik removed a key obstacle to commercialization, according to the brokerage. BofA’s price objective implies a potential 58% upside from Monday’s closing price of $4.43, with the stock up 2.7% in pre-market trading.
Alvotech, which achieved its first full year of net profitability in 2025, operates a pipeline spanning more than 10 programs across multiple therapeutic categories. The company targets a roughly $200 billion biologics loss-of-exclusivity opportunity through 2033, with near-term catalysts including U.S. launches of biosimilars Simponi and Eylea SD, followed by Entyvio. BofA highlighted Eylea HD as a differentiated opportunity, noting Alvotech’s advanced development in the high-dose Eylea biosimilar space.
BofA’s valuation model assumes a 10% discount rate and a 1% terminal growth rate. The firm projects earnings per share of $0.01 in 2026, $0.24 in 2027, and $0.66 in 2028. These figures compare with a Bloomberg consensus range of $0 to $0.23 for 2026, $0.23 for 2027, and $0.46 for 2028, while Visible Alpha’s consensus stands at $0.12 for 2026, $0.37 for 2027, and $0.59 for 2028.
Alvotech’s market capitalization stands at $1.498 billion, with 338.2 million shares outstanding and a free float of 38.8%. The stock has traded within a 52-week range of $2.94 to $9.25, reflecting volatility amid its transition from cumulative operating losses exceeding $2 billion to profitability.
