18 of 21 Analysts Still Think Alnylam Stock Is a Buy. Here's Why They're Right.
2026-09-28 09:23
•Keith Speights •The Motley Fool
••• •••• Axe Cap view
Why Alnylam Still Commands Bullish Backing Despite YTD Losses
Strong analyst support, competitive setbacks for rivals, and compelling valuation keep Alnylam attractive.
Alnylam's 35% drop this year might scare off casual investors, but 18 of 21 analysts still see it as a buy, for good reason. The biotech’s price-to-earnings ratio of about 20 times forward earnings is reasonable, especially with a PEG ratio well below 1, hinting undervaluation given growth prospects. A key rival’s drug recently failed late-stage trials, removing a major obstacle and indirectly boosting Alnylam’s lead. Pfizer’s competing drug keeps patents until 2031, limiting new entrants for now. The biggest caution is whether demand for Alnylam’s products will normalise after strong initial sales, which could slow growth. For South African investors, there’s no direct JSE-listed exposure here, but USD/ZAR is a useful angle: a weaker rand would increase costs for importing such biotech products or investing directly offshore, adding FX risk. If Alnylam’s pipeline disappoints or competition heats up faster than expected, that 44% upside might evaporate. this is just our opinion and not financial advice
Given the strong analyst conviction and risk-reward, I’d watch Alnylam closely and consider a cautious buy via offshore exposure or ETFs. Hedge the USD/ZAR risk if possible.
- ALNY
- USD/ZAR
- demand normalisation for Amvuttra
- potential renewed competition from other drugmakers
5/10
Despite being down 35% year-to-date, Alnylam Pharmaceuticals has rebounded 25% since late July and maintains strong analyst support with 18 of 21 analysts rating it as a buy or strong buy. The stock's attractive valuation (19.7x forward earnings, 0.32 PEG ratio) and favorable market dynamics—including reduced competition from a failed rival drug and extended patent protection for Pfizer's competing therapy—support the bullish outlook. However, investors should monitor demand normalization for Amvuttra and potential developments from the failed Wainua trial.
Our take is based on reporting first published by The Motley Fool.