BofA initiates Alvotech stock with buy rating on biosimilar platform

BofA Securities has initiated coverage on Alvotech SA (NASDAQ:ALVO) with a buy rating and a price target of $7.00, indicating a potential gain of around 58% from the current trading price of $4.43. Analysts perceive the company's multi-year focus on a comprehensive biosimilar development and manufacturing platform as a favorable risk-reward scenario as commercial growth begins to emerge.

Regulatory uncertainty around Alvotech's Reykjavik manufacturing facility initially weighed down investor sentiment, but the recent closure of a key inspection by the FDA eliminates this hurdle and clears the way for new approvals. Alvotech achieved profitability for the first time in 2025, signaling a potential inflection point as investors' focus shifts from regulatory risk to commercial execution.

Recent data shows Alvotech is expected to be profitable this year, as per analyst predictions, and the stock has exhibited strong momentum with a 14% return over the past week. For investors seeking more detailed insights, over 1,400 comprehensive Pro Research Reports on ALVO are available.