In a report released yesterday, Tara Bancroft from TD Cowen maintained a Buy rating on Vaxcyte (PCVX – Research Report), with a price target of $135.00.
Tara Bancroft has given her Buy rating due to a combination of factors including the promising outlook for Vaxcyte’s VAX-24 and VAX-31 vaccines. The company’s valuation appears to be undervalued due to perceived political risks, but the potential for significant growth in the pneumococcal conjugate vaccine (PCV) market, especially in infants, presents a compelling opportunity. The Phase II data for VAX-24 in infants is anticipated by the end of Q1 2025, with expectations that the vaccine will miss on fewer than three serotypes, which would be a positive outcome given the market’s size and growth potential.
Additionally, the adult data for VAX-31 has already demonstrated non-inferiority across all serotypes in earlier trials, leading to the initiation of a pivotal Phase III study expected to yield results in 2026. This progress in both infant and adult segments suggests that Vaxcyte is well-positioned to capture a significant share of the expanding PCV market, which is projected to grow from $8 billion to $13 billion by 2027. These factors collectively support Bancroft’s Buy rating, indicating confidence in the company’s strategic direction and growth prospects.
In another report released on February 23, BTIG also maintained a Buy rating on the stock with a $160.00 price target.
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