13 Best IPO Stocks to Buy According to Wall Street Analysts

2. Alto Neuroscience Inc. (NYSE:ANRO)

Number of Hedge Fund Holders: 19

Average Upside Potential as of August 15: 223.62%

Alto Neuroscience Inc. (NYSE:ANRO) is one of the best IPO stocks to buy according to Wall Street analysts. On June 26, Alto Neuroscience announced positive pharmacodynamic results from an exploratory Phase 2 proof-of-concept/POC trial of its drug candidate, ALTO-203. The trial enrolled 69 patients with major depressive disorder/MDD who also had elevated anhedonia, a condition characterized by a reduced ability to feel pleasure.

While the trial was not powered to show statistical significance on traditional depression scales like MADRS, it successfully identified a robust patient selection biomarker. This biomarker, the EEG high-theta/beta ratio, is a well-validated measure of abnormal cortical arousal and poor attentional control. The findings from this trial replicate results from a previous Phase 1 study in healthy volunteers, confirming that ALTO-203’s pro-cognitive and wake-promoting effects are linked to a reduction in this specific EEG ratio.

The drug is an oral histamine H3 inverse agonist and was well-tolerated in the trial, with insomnia being the most frequent adverse event. Alto Neuroscience plans to report additional results from this exploratory study at a future medical meeting and will determine the next development steps for ALTO-203 after a complete analysis of the data. The company’s goal is to use its Precision Psychiatry Platform to use objective biomarkers for targeted neuropsychiatric drug development.

Alto Neuroscience Inc. (NYSE:ANRO) is a clinical-stage biopharmaceutical company in the US.