ALVO Should I Buy
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Alvotech SA is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite some positive financial performance in Q4 2025 and progress in the biosimilars market, the technical indicators, high leverage, and lack of significant trading signals suggest that the stock is better suited for observation rather than immediate investment.
The technical indicators are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 31.625, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 3.134), with resistance levels at R1: 3.783 and R2: 3.984. There is a 70% chance of a -8.37% drop in the next day, -2.38% in the next week, and -3.03% in the next month.
Alvotech achieved a net profit of $27.92 million in 2025, a significant improvement from a loss the previous year. Q4 2025 revenues exceeded market expectations by $13.07 million. Approval of AVT05 as a biosimilar to Simponi in the UK and European Economic Area opens new revenue streams.
Technical indicators and stock trend analysis suggest a bearish outlook in the short term.
In Q4 2025, revenue increased by 10.14% YoY to $168.9 million, net income improved significantly to -$108.5 million (up 62.09% YoY), and EPS increased to -$0.39 (up 69.57% YoY). Gross margin improved to 63.72%, up 33.84% YoY. The company showed strong licensing revenue growth and profitability improvements.
Analysts have lowered price targets across the board. Deutsche Bank reduced its target to $4 from $8 with a Hold rating. Barclays lowered its target to $4 from $5 with an Underweight rating, citing high leverage and pending U.S. approvals. UBS reduced its target to $6 from $10 but maintained a Buy rating, expressing confidence in the company's remediation plan and long-term potential.
