Dynavax stock rating reiterated at Market Outperform by Citizens JMP

Published 23/06/2025, 10:46
Dynavax stock rating reiterated at Market Outperform by Citizens JMP

Investing.com - Citizens JMP maintained its Market Outperform rating on Dynavax Technologies (NASDAQ:DVAX) on Monday, keeping its price target at $31.00 per share. Currently trading at $9.99, the stock shows significant upside potential according to InvestingPro data, which reveals strong financial health metrics and a solid balance sheet with more cash than debt.

The research firm’s analysis focused on Dynavax’s HEPLISAV-B vaccine, which exclusively uses CpG-1018 as its adjuvant component. This adjuvant plays a critical role in enhancing immune response to the hepatitis B vaccine. The company’s strong gross profit margin of 60% and impressive revenue growth of nearly 25% reflect its operational efficiency. For deeper insights into DVAX’s financial performance and growth prospects, check out the comprehensive analysis available on InvestingPro.

Citizens JMP also addressed Dynavax’s shingles vaccine candidate, which is currently in clinical testing with groups receiving formulations both with and without aluminum hydroxide (alum) as an additional adjuvant.

The firm noted that Phase 1 trial results for the shingles candidate showed alum did not significantly impact IgG antibody or CD4 T-cell responses, two important markers of immune system activation.

Based on these clinical observations, Citizens JMP indicated that the potential exclusion of alum from the final shingles vaccine formulation "would not be a huge loss" for the effectiveness of the product.

In other recent news, Dynavax Technologies Corporation announced that its stockholders have elected all four of the company’s director nominees at the 2025 Annual Meeting. This decision comes amid a push from Deep Track Capital, a significant shareholder holding approximately 14.82% of shares, advocating for changes to the Board of Directors due to concerns over Dynavax’s strategic direction and market performance. Deep Track proposed four nominees, citing Dynavax’s inability to meet its 2024 sales and market share targets for its Heplisav vaccine. Despite these challenges, advisory firms Glass Lewis (JO:LEWJ), ISS, and Egan Jones recommended supporting Dynavax’s current board, highlighting the company’s strategic shift towards vaccine development and its reported 203% total return to stockholders over five years.

Glass Lewis acknowledged some of Deep Track’s concerns, such as Dynavax’s conservative capital allocation strategy, and recommended voting for two of Deep Track’s nominees, Brett Erkman and Donald Santel. The advisory firm noted that these candidates could provide valuable perspectives on capital markets and shareholder engagement. Meanwhile, Dynavax reported a 44% market share for its HEPLISAV-B vaccine in the U.S. adult hepatitis B market, generating $268 million in net product revenue in 2024.

The ongoing debate over board composition and strategic direction will be a focal point at the upcoming Annual Meeting, as shareholders consider the proposals from both Dynavax and Deep Track. The outcome of the shareholder vote will be closely monitored by investors interested in the company’s future trajectory.

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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