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Investing.com - Evercore ISI initiated coverage on Vir Biotechnology (NASDAQ:VIR) with an Outperform rating and a $12.00 price target. According to InvestingPro data, analyst price targets for VIR range from $12 to $31, with the stock currently trading near its 52-week low of $4.16.
The research firm highlighted what it describes as a "compelling asymmetric setup" for the biotech company, noting the market’s lack of appreciation for how quickly the company’s outlook could improve.
Evercore ISI pointed to Vir’s differentiated oncology pipeline, which includes what the firm considers a "potentially best-in-class PSMA-targeting bispecific," alongside a pivotal-stage rare disease asset with validated biology.
The firm noted that Vir currently trades below cash value with an enterprise value of approximately negative $300 million, describing it as a "poster child of biotech zombies." InvestingPro analysis confirms this strong liquidity position, showing a healthy current ratio of 7.01 and more cash than debt on its balance sheet. Get access to the complete VIR financial health analysis and 8 additional key ProTips with InvestingPro.
Despite acknowledging "legitimate debates around the pipeline & burn," Evercore ISI believes the current valuation offers investors "an intriguing entry point" with "meaningful upside" potential even under conservative assumptions.
In other recent news, Vir Biotechnology reported its second-quarter earnings for 2025, which fell short of expectations. The company posted an earnings per share of -0.8 USD, missing the forecast of -0.7 USD, and recorded revenue of 1.21 million USD, which was significantly below the anticipated 2.66 million USD. This resulted in a negative revenue surprise of 54.51%. Despite these disappointing earnings results, Vir Biotechnology received a boost from BofA Securities, which upgraded the company’s stock from Neutral to Buy. BofA raised its price target for Vir from $12.00 to $14.00. The upgrade was based on the potential of Vir’s treatment for severe liver disease caused by hepatitis delta virus, which BofA projects could generate over $1 billion in unadjusted peak sales. Analyst Geoff Meacham from BofA believes the market is underestimating this potential. These recent developments highlight a mix of challenges and opportunities for Vir Biotechnology.
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