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Investing.com -- Shares of Dynavax (NASDAQ:DVAX) Technologies (NASDAQ: DVAX) fell 6% Tuesday after Goldman Sachs issued a rare "sell" rating on the biopharmaceutical company, diverging from the more optimistic view of other Wall Street analysts.
Goldman Sachs analyst Paul Choi downgraded the stock from "Neutral" to "Sell," setting a price target of $12, which is significantly lower than the company’s closing price of $13.20 on Monday. This new target also contrasts sharply with the average analyst price target of over $24 for Dynavax.
Choi’s bearish stance stems from several concerns, including the competitive landscape in shingles vaccination, which could diminish the potential net present value of Dynavax’s Z-1018 program. The analyst also cited unpredictable demand patterns for repeat hepatitis-B vaccinations in the 2030s, casting doubt on the long-term outlook for Dynavax’s Heplisav-B, despite its current market share gains.
Moreover, Choi pointed out uncertainties regarding the regulatory environment for vaccines in the U.S., which could impact the company’s prospects. "Additionally, DVAX now ranks in the lowest quintile for potential upside/downside in our coverage group," Choi stated. "Our 12-month price target represents a -7.7% return versus an average return of +129.7% for our coverage."
This assessment from Goldman Sachs stands in stark contrast to the more favorable ratings from five other analysts who have recommended "buy" or "outperform" for Dynavax, highlighting a split in sentiment among industry watchers.
Investors reacted to the downgrade, with the stock experiencing a notable decline in Tuesday’s trading session. The move underscores the influence of analyst ratings on investor perceptions and the volatility that can arise from shifts in these expert opinions.
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