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On Tuesday, H.C. Wainwright analyst Edward White adjusted the price target for Valneva (EPA:VLS) SE (NASDAQ: VALN) shares, reducing it to $17.00 from the previous $18.00, while reaffirming a Buy rating on the stock. Currently trading at $7.33, the stock has shown strong momentum with a 67.66% gain year-to-date. According to InvestingPro analysis, the stock appears fairly valued based on its comprehensive Fair Value model. The adjustment followed Valneva’s disclosure of its full-year 2024 financial results and cash position as of December 31, 2024.
Valneva reported a total revenue of €169.6 million for the year 2024, marking a 10% increase from €153.7 million in 2023. This figure slightly exceeded H.C. Wainwright’s estimate of €169.4 million but fell short of the consensus estimate of €186.0 million. InvestingPro data reveals that while the company maintains a healthy current ratio of 2.78, it faces challenges with weak gross profit margins. Despite the overall revenue growth, Valneva experienced lower than expected U.S. sales for its product Ixchiq in its launch year.
The company’s product sales reached €163.3 million in 2024, showing a 13% year-over-year increase from €144.6 million in 2023. H.C. Wainwright’s estimate for Ixchiq sales in 2024 was €3 million. Due to the slower start for Ixchiq, the firm has also revised its sales forecast for the product in 2029 down to €225 million from the previous €250 million projection.
Valneva’s reported cash and cash equivalents stood at €168.3 million as of the end of 2024. Looking ahead, the company has announced it will conduct a conference call on March 20, 2025, to discuss its financial results and business updates.
In his commentary, Edward White reaffirmed the Buy rating for Valneva, citing the company’s double-digit sales growth. However, he noted the necessity to adjust the price target to $17 due to the initial performance of Ixchiq in the U.S. market.
In other recent news, Valneva SE has been making significant strides with its Ixchiq vaccine. The Medicines and Healthcare products Regulatory Agency in the United Kingdom (TADAWUL:4280) granted marketing authorization for Ixchiq, a vaccine designed for active immunization against diseases caused by the chikungunya virus in adults aged 18 and over. This follows the vaccine’s accelerated approval by the U.S. Food and Drug Administration and subsequent recommendation by the Advisory Committee on Immunization Practices.
The vaccine, which has shown effectiveness for at least three years in adult groups, has also been approved in Europe and Canada, with commercial launches ongoing. Valneva reported modest Ixchiq sales of €0.8 million in the third quarter of 2024, but anticipates the vaccine’s market potential to be significant, forecasting sales to surpass €100 million in the third year following the commercial launch. The company also expects approval in Brazil within the current quarter.
H.C. Wainwright has reaffirmed its Buy rating for Valneva, maintaining an $18 price target. The firm’s analysis projects Ixchiq’s sales to reach €3 million in 2024, with a substantial increase to €250 million by 2029. These are recent developments that highlight the ongoing progress and potential of Valneva’s Ixchiq vaccine.
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