Figma Shares Indicated To Open $105/$110
On Monday, Jefferies reiterated its Buy rating on Vaxcyte (NASDAQ:PCVX) shares, maintaining a price target of $146.00. According to InvestingPro data, analyst consensus remains highly bullish with targets ranging from $135 to $163, placing Jefferies’ target within the consensus range. The firm’s analyst cited the recent positive infant study results of VAX-31 as a significant factor in removing the "Bear Case" for the stock. The results of the dose-finding study in infants were seen as a positive development, indicating the potential for VAX-31 to become the future standard of care by broadening coverage without compromising immunogenicity or reactogenicity.
The reiteration of the Buy rating follows a substantial pullback in Vaxcyte’s stock value, which has seen a decline of approximately 40% from its high after the company reported promising Phase 1/2 results for VAX-31 in adults back in September 2024. This decline was largely attributed to political uncertainties and the anticipation of the recent infant study results.
Despite the stock’s recent performance, Jefferies views the current valuation of Vaxcyte, with an enterprise value of less than $6 billion and over $3 billion in cash, as an opportunity. The firm believes that the latest data from the infant study supports the approvability of VAX-31 based on regulatory precedents and its competitive position relative to the current standard of care. InvestingPro analysis indicates the stock is currently undervalued, with a strong financial health score of 2.26 and notable liquidity, maintaining a robust current ratio of 12.75. For deeper insights into Vaxcyte’s valuation and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The analyst acknowledged the challenges posed by the current market environment, which has been unfavorably affected by the recent resignation of the FDA’s CBER director, who was responsible for overseeing vaccine approvals. However, the positive infant study results are seen as a key driver in increasing the fundamental value of Vaxcyte’s stock.
Vaxcyte’s VAX-31 is under development as a vaccine candidate, and the latest study results have shown promise in infants, a critical demographic for vaccine efficacy and safety. The company aims to optimize the dose and formulation to further enhance the vaccine’s profile. While InvestingPro data shows the company is not yet profitable, with a negative EBITDA of $562.54 million in the last twelve months, it maintains a strong balance sheet with more cash than debt, positioning it well for continued development. Subscribers to InvestingPro can access additional financial health metrics and exclusive ProTips that provide deeper insights into Vaxcyte’s financial position and growth potential.
In other recent news, Vaxcyte Inc . reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -1.12, which aligned with forecasts. The company maintained a strong cash position of $3.13 billion, but the absence of revenue growth has raised concerns among investors. Guggenheim and Mizuho (NYSE:MFG) Securities have reiterated their positive outlook on Vaxcyte, with Guggenheim maintaining a Buy rating and a $160 price target, while Mizuho reiterated an Outperform rating with a $163 target. These endorsements follow Vaxcyte’s announcement of promising topline results from its VAX-24 infant vaccine study, which met non-inferiority criteria for immune response after a three-dose series.
Despite these positive developments, Vaxcyte’s stock experienced a decline after the announcement of Phase 2 study results for VAX-24 in infants, indicating investor concerns over the vaccine’s commercial prospects. The company has also announced the development of VAX-XL, a third-generation pneumococcal conjugate vaccine candidate, aiming to expand its coverage spectrum. Additionally, Vaxcyte plans to advance the VAX-24 mid-dose formulation to a potential Phase 3 program. Investors are closely monitoring Vaxcyte’s progress, especially as the company aims to release complete VAX-24 data by the end of 2025 and initiate a Phase 3 study for VAX-31 in mid-2025.
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