BTIG lifts Arcturus stock price target to $48 on vaccine outlook

Published 18/02/2025, 12:10
BTIG lifts Arcturus stock price target to $48 on vaccine outlook

On Tuesday, BTIG analysts maintained a Buy rating on Arcturus Therapeutics (NASDAQ:ARCT) shares and increased the price target from $41.00 to $48.00. According to InvestingPro data, analyst targets for ARCT range from $41 to $140, with the stock showing strong momentum, gaining over 12% in the past week. The company's stock is currently trading below its InvestingPro Fair Value, suggesting potential upside opportunity. This adjustment follows the recent positive opinion from the Committee for Medicinal Products for Human Use (CHMP) regarding Arcturus's SAM-RNA technology, which is used in their KOSTAIVE vaccine. The analysts believe this endorsement could foreshadow a similar outcome in the United States.

The CHMP's favorable opinion has led BTIG to raise the probability of success for the vaccine by 10% in both the European and U.S. markets. The analysts underscored KOSTAIVE's potential to be among the most effective vaccines while also offering a safety profile that could be significantly safer compared to mRNA competitors COMIRNATY and SPIKEVAX. InvestingPro analysis reveals the company maintains a healthy financial position with a current ratio of 4.76, indicating strong ability to meet short-term obligations.

BTIG's analysis referenced recent data from Moderna (NASDAQ:MRNA), which showed that its mRNA-1010 vaccine generated a superior immune response compared to Fluzone HD, a high-dose influenza vaccine. However, the safety data from Moderna's trials indicated a higher incidence of Grade 2 and measurable levels of Grade 3 adverse events, which could limit the adoption of mRNA influenza vaccines.

In contrast, Arcturus's KOSTAIVE vaccine, with a 5µg dose delivering the complete S protein, may present a better risk/reward profile than any mRNA vaccine observed so far, according to BTIG. The analysts also compared the potential of KOSTAIVE to Novavax (NASDAQ:NVAX)'s protein-based COVID-19 vaccines, which have shown high efficacy and possibly the best safety profile among vaccines, despite the lack of direct comparative trials.

The report concluded by highlighting the abandoned adjuvant-containing COVID vaccines from Sanofi (NASDAQ:SNY) and GSK due to insufficient immunogenicity, which further positions Arcturus's KOSTAIVE as a promising candidate in the vaccine market. For deeper insights into Arcturus's competitive position and financial health, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed valuation metrics in the Pro Research Report.

In other recent news, Arcturus Therapeutics Holdings Inc. has appointed Dr. Moncef Slaoui as Chair Designate, a move that is expected to significantly impact the company's therapeutic and vaccine development programs. Dr. Slaoui's experience includes leading roles at GlaxoSmithKline (NYSE:GSK) and Operation Warp Speed. Furthermore, Arcturus has received approval from Meiji Seika Pharma to include domestic production sites in Japan for the manufacturing and marketing of the COVID-19 vaccine, Kostaive. This development is a significant step for local pharmaceutical manufacturing.

Additionally, H.C. Wainwright has maintained a positive stance on Arcturus shares, reiterating a Buy rating and a price target of $63. This endorsement follows the recent developments around Kostaive. On another note, BTIG analysts have also begun covering Arcturus with a positive outlook, assigning a Buy rating and establishing a price target of $41.00. The firm forecasts approximately $46 million in revenues for Arcturus in 2025, stemming from partnered vaccine initiatives.

Lastly, Arcturus has announced the commencement of dosing in two mid-stage clinical studies. This development places Arcturus on a trajectory to publish interim results within the first half of this year. The studies are evaluating ARCT-032 for cystic fibrosis and ARCT-810 for ornithine transcarbamylase (OTC) deficiency. These are the latest developments in the company's progress.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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