Guggenheim maintains Vaxcyte stock Buy rating, $160 target

Published 31/03/2025, 13:54
Guggenheim maintains Vaxcyte stock Buy rating, $160 target

On Monday, Guggenheim reiterated its Buy rating on Vaxcyte (NASDAQ:PCVX) shares, maintaining a $160.00 price target, aligning with the broader Wall Street consensus. According to InvestingPro data, analyst targets range from $135 to $163, reflecting strong confidence in the company’s potential. The endorsement comes after Vaxcyte announced positive topline data for its VAX-24 infant vaccine. The study met its non-inferiority thresholds for immunogenicity on 20 out of 24 serotypes after the primary three-dose series.

The company also shared preliminary data from after the fourth dose, which showed that 19 of the 24 serotypes surpassed Vaxcyte’s target. These results support the vaccine’s safety profile, the observed dose-response relationship, and minimal evidence of carrier suppression. The company’s strong financial position, with a current ratio of 12.75 and minimal debt-to-equity ratio of 0.02, provides ample runway for continued development. InvestingPro analysis reveals several additional positive indicators about Vaxcyte’s financial health. This suggests that higher dosing could be feasible for select serotypes in VAX-24 or for the addition of new serotypes in future vaccines such as VAX-31.

Vaxcyte’s ongoing VAX-31 infant study is evaluating a formulation with higher fixed polysaccharide content and optimizations for specific serotypes. Results expected in mid-2026 will guide dose optimization and the company’s strategy for infant vaccines. The same year, phase 3 adult data for VAX-31 is also anticipated.

Guggenheim’s commentary highlighted the potential for Vaxcyte to replicate its adult vaccine success in infants. The firm suggests that investors consider buying Vaxcyte shares, especially if any weakness arises from the current data or regulatory agency departures. With a market capitalization of $8.9 billion and strong liquidity position, Vaxcyte appears well-positioned to execute its development strategy. For deeper insights into Vaxcyte’s valuation and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence. They anticipate that either VAX-31 or further dosing optimizations will confirm the company’s capability to extend its vaccine portfolio effectively from adults to infants.

In other recent news, Vaxcyte, Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -1.12, which met the company’s forecast. Despite a solid cash position of $3.13 billion, the lack of revenue growth contributed to a negative market reaction. The company is advancing its pneumococcal conjugate vaccine candidates, VAX-24 and VAX-31, with VAX-24 showing promise in a Phase 2 study for infants. Vaxcyte’s VAX-24 met the non-inferiority criteria for immune response compared to Prevnar 20, and no serious adverse events were reported. Analysts from Mizuho (NYSE:MFG) Securities maintained an "Outperform" rating for Vaxcyte, highlighting the company’s resilience despite recent political challenges. Vaxcyte is also developing VAX-XL, a third-generation vaccine candidate aiming to expand coverage. These developments indicate ongoing efforts by Vaxcyte to address the invasive pneumococcal disease burden, particularly in children under five.

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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