CureVac (CVAC – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Alec Stranahan from Bank of America Securities reiterated a Sell rating on the stock and has a $2.50 price target.
Alec Stranahan’s rating is based on several concerns surrounding CureVac’s current financial and operational situation. Despite a restructuring that aims to make the company more capital efficient, there is significant uncertainty regarding the value of its pipeline assets, which are still in early stages of development. The anticipated clinical data from key projects, such as the CVGBM cancer vaccine, are not expected until the second half of 2025, and the outcomes are crucial for investor confidence.
Moreover, while a recent €400 million payment from an amended GSK licensing agreement provides some financial stability, the long-term benefits of this partnership remain unclear. The late market entry of CureVac’s flu and COVID-19 programs, partnered with GSK, is unlikely to generate substantial value soon. These factors, combined with ongoing patent litigation and the need for further pipeline derisking, contribute to the Sell rating, as the stock’s current price exceeds the analyst’s price objective.
According to TipRanks, Stranahan is an analyst with an average return of -15.0% and a 32.39% success rate. Stranahan covers the Healthcare sector, focusing on stocks such as Candel Therapeutics, Perspective Therapeutics, and Novavax.