In a report released today, Andrew Fein from H.C. Wainwright maintained a Buy rating on Arvinas Holding Company, with a price target of $18.00.
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Andrew Fein has given his Buy rating due to a combination of factors that highlight Arvinas Holding Company’s strategic decisions and future potential. The recent decision to out-license vepdegestrant to a third party, rather than co-commercialize with Pfizer, is seen as a financially prudent move. This arrangement allows Arvinas to avoid the costs associated with building a commercialization team, while still securing potential upfront cash, milestones, and royalties. For Pfizer, it optimizes their portfolio by allowing them to focus on other pipeline programs while retaining potential royalty benefits.
Fein’s rating also reflects the shift in Arvinas’ focus from a near-term commercial biotech to a platform company with a diverse pipeline, including promising programs like ARV-102 for Parkinson’s and ARV-806 for KRAS G12D cancers. The upcoming data from these programs could serve as significant catalysts for the company. Additionally, the $100 million share buyback authorization is seen as a strategic move to enhance shareholder value, especially if executed at current share prices. This buyback could retire a substantial portion of shares, thereby increasing per-share exposure to the pipeline’s potential success.
In another report released today, Piper Sandler also reiterated a Buy rating on the stock with a $14.00 price target.