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Investing.com - Guggenheim has reduced its price target on Vaxcyte (NASDAQ:PCVX) to $116 from $160 while maintaining a Buy rating, citing adjusted timelines for the company’s VAX-31 vaccine programs. The stock, which has declined over 65% in the past six months, still maintains strong analyst support with a consensus "Strong Buy" rating and targets ranging from $50 to $163. InvestingPro data shows the company currently trades below its Fair Value.
The firm noted that Vaxcyte’s second-quarter update delivered key information across both adult and infant VAX-31 programs, creating what it describes as an improved stock setup for investors ahead of Phase 3 adult trial results expected in 2026. According to InvestingPro analysis, while the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 17.7, it’s currently burning through cash rapidly - one of several key insights available in the comprehensive Pro Research Report.
For the adult program, Vaxcyte plans to initiate its pivotal trial in the fourth quarter, representing a 3-4 month delay, though the company maintains its timeline for topline data in 2026. The FDA has confirmed the pivotal trial will utilize a non-inferiority immunogenicity-based study with patient requirements generally aligned with precedent programs.
In the infant program, Vaxcyte has modified its ongoing Phase 2 trial by discontinuing the low-dose arm and adding a new optimized dose, with enrollment expected to restart by the end of the third quarter. The company now anticipates topline data from both primary and booster doses by the end of the first half of 2027, later than the previously expected mid-2026 timeline.
Guggenheim has adjusted its probability of success for the infant program to 70% from 80% and updated launch and spending assumptions to reflect the modest delay, while maintaining its estimates for the adult program.
In other recent news, Cantor Fitzgerald has maintained its Overweight rating on Vaxcyte shares. This decision reflects the firm’s continued confidence in the company’s future prospects. The rating comes amid discussions about the potential impact of the upcoming Advisory Committee on Immunization Practices (ACIP) meeting on vaccine developers. However, analyst Carter Gould from Cantor Fitzgerald noted that pneumococcal disease is not anticipated to be a significant topic at the meeting. As a result, the discussions are unlikely to directly influence Vaxcyte’s current operations or future prospects. Gould also highlighted that Vaxcyte’s vaccine programs are still several years from potential approval and recommendation by ACIP. This suggests that any immediate outcomes from the meeting would not directly affect the company. These recent developments provide insight into the current standing and anticipated trajectory of Vaxcyte.
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