Analyst Jason Gerberry of Bank of America Securities reiterated a Buy rating on Vaxcyte (PCVX – Research Report), retaining the price target of $157.00.
Jason Gerberry has given his Buy rating due to a combination of factors including the anticipation of key Phase 2 infant data for Vaxcyte’s VAX-24 vaccine, which is expected to be a significant catalyst for the stock. The upcoming data is seen as likely to be positive, which would reduce risks associated with the follow-on VAX-31 program, a crucial element in the company’s valuation model. Additionally, the current stock price is considered undervalued given the potential of Vaxcyte’s pneumococcal vaccines, which are regarded as best-in-class.
Despite concerns about possible shifts in vaccine policy under new HHS leadership, Vaxcyte’s market remains stable due to the longstanding regulatory framework and bipartisan support for pneumococcal vaccines. The Phase 2 trial aims to establish an effective dose with minimal misses in seroresponder non-inferiority, providing confidence in the vaccine’s competitive advantage and its applicability to the infant population. This confidence is expected to translate into a higher probability of success for future studies, reinforcing the Buy recommendation.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $160.00 price target.
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