Analyst Jason Gerberry from Bank of America Securities reiterated a Buy rating on Vaxcyte (PCVX – Research Report) and decreased the price target to $137.00 from $157.00.
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Jason Gerberry has given his Buy rating due to a combination of factors including the recent Phase 2 dose-finding data for VAX-24 in infants, which provides a credible roadmap for future studies. Despite the stock’s significant sell-off, Gerberry believes the market reaction is exaggerated, as the study was primarily designed to inform Phase 3 dose selection and was not fully powered. The FDA’s approach of evaluating data in totality, along with reassuring secondary endpoints like IgG, supports the potential for dose optimization in Phase 3 trials.
Furthermore, Vaxcyte’s strong Phase 2 data in adults and the potential improvements for Phase 3 trials in infants bolster confidence in the company’s competitive positioning within the $8 billion-plus pneumococcal conjugate vaccine market. The analyst emphasizes that the missed serotypes in the Phase 2 study are likely addressable through enhanced study design and dose optimization in Phase 3, reinforcing the Buy recommendation for Vaxcyte’s stock.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $90.00 price target.