Alvotech (ALVO): A Bull Case Theory

We came across a bullish thesis on Alvotech on r/valueinvesting by 123Thorr. In this article, we will summarize the bulls’ thesis on ALVO. Alvotech's share was trading at $5.29 as of January 28th. ALVO’s trailing and forward P/E were 23.00 and 10.95, respectively according to Yahoo Finance.

Alvotech ($ALVO) is emerging as a fast-growing biosimilars manufacturer, generating roughly $500 million in annual revenue by developing and commercializing lower-cost alternatives to some of the world’s best-selling drugs, including Humira, Stelara, and Keytruda. The company’s business model is reinforced by strategic global partnerships that significantly reduce commercialization risk and expand its reach.

Teva markets Alvotech’s biosimilars in the U.S., including a Humira alternative, while Dr. Reddy’s collaborates on a Keytruda biosimilar aimed at the large oncology market, and STADA distributes Alvotech’s products across Europe. These alliances provide scale, regulatory expertise, and access to major markets without Alvotech needing to build a full global sales infrastructure on its own.

Financial momentum has accelerated sharply. Revenue surged more than 420% year over year in 2024, rising from $93 million to approximately $492 million, reflecting successful product launches and expanding market penetration. This growth carried into 2025, with Q1 revenue exceeding $132 million and EBITDA swinging from a $38 million loss to a $20 million profit. On a first-half basis, the company generated over $140 million in profit, a dramatic reversal from a net loss of more than $150 million in the prior-year period, underscoring improving operating leverage as volumes scale.

Despite this progress, Alvotech’s stock trades close to its 52-week lows, implying a valuation disconnect relative to its growth and profitability trajectory. Analyst price targets range from $8 to as high as $28, with most clustered above $10, suggesting meaningful upside if execution continues.

Key risks remain, notably roughly $1 billion in debt and potential regulatory or FDA approval delays, with upcoming earnings representing a near-term volatility catalyst. While not risk-free, the combination of rapid growth, improving profitability, and a depressed valuation supports the view that Alvotech may be materially undervalued at current levels.

Previously, we covered a bullish thesis on Coherus BioSciences, Inc. (CHRS) by Steve Wagner in March 2025, which highlighted its transition into a pure-play oncology company, Loqtorzi’s commercial traction, and pipeline-driven upside. CHRS’s stock price has appreciated by approximately 110.95% since our coverage due to improved sentiment around oncology execution. 123Thorr shares a similar view on Alvotech but emphasizes biosimilar scale, revenue acceleration, and valuation dislocation.

Alvotech is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held ALVO at the end of the third quarter which was 10 in the previous quarter. While we acknowledge the potential of ALVO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.