Goldman Sachs reiterates Sell rating on Dynavax stock despite positive trial data

Published 21/08/2025, 18:22
Goldman Sachs reiterates Sell rating on Dynavax stock despite positive trial data

Investing.com - Goldman Sachs has reiterated its Sell rating and $11.00 price target on Dynavax Technologies (NASDAQ:DVAX), currently trading at $11.12, following the company’s announcement of topline results from its shingles vaccine trial. According to InvestingPro data, analyst targets for the stock range from $11 to $32, with a consensus recommendation leaning towards a moderate buy.

The pharmaceutical company released data from Part 1 of its Phase 1/2 head-to-head study comparing its Z-1018 vaccine against GSK’s Shingrix in participants aged 50-69 years. The results showed Z-1018 demonstrated superior tolerability to Shingrix while maintaining non-inferiority on efficacy measures. The company maintains a strong financial position with a healthy current ratio of 6.65 and impressive revenue growth of 27% over the last twelve months.

Despite viewing the data update as positive, Goldman Sachs analyst Paul Choi noted that "the clinical bar for Z-1018 remains highly elevated" and questioned whether superior safety alone could translate into meaningful commercial success. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though net income is expected to decline this year. Subscribers can access 8 additional key ProTips and comprehensive financial metrics in the Pro Research Report.

The investment bank expressed particular concern about potential competition from Curevo’s amezosvatein, another shingles vaccine candidate in development. Goldman Sachs also indicated it seeks clarity on possible strategic interest in the program, referencing previous management comments about leveraging ex-US opportunities.

Goldman Sachs maintained its Sell recommendation on Dynavax stock, suggesting that while the tolerability profile appears promising, it may not be sufficient to drive significant market adoption against established competitors.

In other recent news, Dynavax Technologies Corporation announced impressive second-quarter 2025 earnings results. The company surpassed analysts’ expectations with an earnings per share of $0.14, compared to the projected $0.10, marking a 40% surprise. Additionally, Dynavax reported revenue of $95.44 million, exceeding the anticipated $85.57 million. In another development, the company shared positive topline results from its Phase 1/2 clinical trial for Z-1018, its experimental shingles vaccine candidate. The trial indicated that Z-1018 achieved immune responses comparable to GlaxoSmithKline (NYSE:GSK)’s Shingrix, with a significantly better tolerability profile. At the selected dose formulation, Z-1018 achieved a 100% humoral vaccine response rate compared to Shingrix’s 96.9%. These developments reflect Dynavax’s ongoing efforts in advancing its vaccine candidates and financial performance.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.